Top 2 Health Care Stocks That Are Ticking Portfolio Bombs

As of March 25, 2025, two 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.

Arcutis Biotherapeutics Inc ARQT

Health Canada, on March 17, approved its Zoryve cream for the treatment of mild to moderate atopic dermatitis. This approval comes after data from phase 3 clinical trials showed that 90% of patients experienced symptom improvement within four weeks and 69% achieved at least a 50% reduction in disease severity. The company's stock gained around 42% over the past month and has a 52-week high of $17.70.
RSI Value: 71
ARQT Price Action: Shares of Arcutis Biotherapeutics gained 1.7% to close at $17.29 on Monday.

Tonix Pharmaceuticals Holding Corp TNXP

On March 24, Tonix Pharmaceuticals Holding announced that the FDA will not require an Advisory Committee meeting for its New Drug Application for TNX-102 SL, a potential new treatment for fibromyalgia. The company's stock gained around 279% over the past month and has a 52-week high of $1,145.92.
RSI Value: 77.1
TNXP Price Action: Shares of Tonix Pharmaceuticals gained 32.5% to close at $30.51 on Monday.

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