Top 3 Health Care Stocks That May Keep You Up At Night In Q1

As of March 11, 2025, three stocks in the health care sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.

The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, according to Benzinga Pro.

Here's the latest list of major overbought players in this sector.

2Seventy Bio Inc TSVT

On March 10, 2seventy bio agreed to be acquired by Bristol Myers Squibb for $5.00 per share in 88% premium transaction valued at $286 million. “A year ago, 2seventy decided to exclusively focus on unlocking the value of Abecma, with the goal of delivering more time for people living with multiple myeloma and maximizing value for all stakeholders,” said Chip Baird, chief executive officer, 2seventy bio. “The strategic rationale for this acquisition is clear and today’s announcement represents the culmination of the journey for 2seventy bio." The company's stock gained around 20% over the past month and has a 52-week high of $5.99.
RSI Value: 82.5
TSVT Price Action: Shares of 2Seventy Bio gained 5.3% to close at $2.80 on Monday.

Sanofi SA SNY

On Feb. 14, the FDA approved Sanofi's Merilog as a biosimilar to Novo Nordisk A/S‘ NVO Novolog (insulin aspart) for improving glycemic control in adults and pediatric patients with diabetes mellitus.. The company's stock gained around 10% over the past month and has a 52-week high of $60.12.
RSI Value: 77.4
SNY Price Action: Shares of Sanofi gained 0.2% to close at $59.35 on Monday.

Vertex Pharmaceuticals Inc VRTX

On Feb. 10, Vertex Pharmaceuticals posted better-than-expected quarterly sales. “2024 marked a year of tremendous growth for Vertex and we anticipate 2025 will be another important year with the landmark JOURNAVX approval and launch for moderate-to-severe acute pain; the launch of our fifth CF medicine, ALYFTREK; the continuing global launch of CASGEVY; and multiple ongoing pivotal trials. We are excited to drive diversification of the revenue base, disease areas of focus, R&D pipeline, and geographies to continue to deliver long-term value to both patients and shareholders,” said Reshma Kewalramani, M.D., Chief Executive Officer and President of Vertex. The company's stock gained around 10% over the past month and has a 52-week high of $519.88.
RSI Value: 74
VRTX Price Action: Shares of Vertex Pharmaceuticals gained 2.4% to close at $500.01 on Monday.

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