Top 5 Health Care Stocks That Are Ticking Portfolio Bombs

The most overbought stocks in the health care sector presents an opportunity to go short on these overvalued companies.

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.

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

Immuneering Corporation IMRX

• Immuneering posted a narrower-than-expected quarterly loss. “2022 was a year of important progress towards our goal of creating impactful new medicines for cancer patients,” said Ben Zeskind, Ph.D., MBA, Co-founder, and Chief Executive Officer of Immuneering. The company’s stock has a 52-week high of $16.17 .
• RSI Value: 75.04
• IMRX Price Action: Shares of Immuneering gained 6.2% to close at $8.00 on Monday.

Protagonist Therapeutics, Inc. PTGX

• Protagonist Therapeutics announced JNJ-2113 met its primary endpoint in the Phase 2b FRONTIER 1 clinical trial in psoriasis. The company’s stock has a 52-week high of $27.41.
• RSI Value: 80.33
• PTGX Price Action: Shares of Protagonist Therapeutics rose 1.5% to close at $25.38 on Monday.

Provention Bio, Inc. PRVB

• Sanofi announced plans to acquire Provention Bio. The company has a 52-week high of $24.23.
• RSI Value: 86.36
• PRVB Price Action: Shares of Provention Bio gained 259.7% to close at $24.10 on Monday.

Cardiovascular Systems, Inc. CSII

• Cardiovascular Systems announced a definitive agreement for Abbott to acquire the company for $20 per share. The company’s 52-week high is $23.47.
• RSI Value: 72.14
• CSII Price Action: Shares of Cardiovascular Systems rose 0.4% to close at $19.66 on Monday.

Amryt Pharma plc AMYT

• Chiesi Farmaceutici announced it will acquire Amryt Pharma for $14.50 per ADS plus contingent value rights of up to an additional $2.50 per ADS. The company has a 52-week high of $14.77.
• RSI Value: 71.27
• AMYT Price Action: Shares of Amryt Pharma fell 0.4% to settle at $14.55 on Monday.

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