Top 5 Health Care Stocks That Could Sink Your Portfolio This Quarter

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.

Outlook Therapeutics, Inc. OTLK

• Outlook Therapeutics reported a narrower-than-expected second-quarter loss. “We continue to make significant progress in our pre-launch activities as we approach our PDUFA goal date set for August 29, 2023, just three short months away. These initiatives are focused on positioning Outlook Therapeutics as an upcoming leader in the anti-VEGF space by meeting FDA requirements for an ophthalmic approval,” commented Russell Trenary, President and Chief Executive Officer of Outlook Therapeutics. The company’s stock has a 52-week high of $1.8950 .
• RSI Value: 74.33
• OTLK Price Action: Shares of Outlook Therapeutics rose 9% to close at $1.75 on Monday.

MorphoSys AG MOR

• MorphoSys posted upbeat quarterly results. "We had a strong first quarter, marked by numerous achievements. Most importantly, we completed enrollment of our Phase 3 MANIFEST-2 study of pelabresib in first-line myelofibrosis ahead of schedule. As a result, the topline data from the trial are now expected by the end of 2023, months earlier than previously anticipated," said Jean-Paul Kress, M.D., Chief Executive Officer of MorphoSys. The company’s stock has a 52-week high of $6.85.
• RSI Value: 74.05
• MOR Price Action: Shares of MorphoSys rose 2.6% to close at $6.75 on Monday.

Krystal Biotech, Inc. KRYS

• The FDA approved Krystal Biotech Inc's KRYS Vyjuvek (beremagene geperpavec-svdt) for treating patients six months of age or older with dystrophic epidermolysis bullosa (DEB). The company has a 52-week high of $127.02.
• RSI Value: 72.89
• KRYS Price Action: Shares of Krystal Biotech fell 1.9% to close at $121.79 on Monday.

IDEAYA Biosciences, Inc. IDYA

• IDEAYA received IND clearance enabling Phase 1/2 clinical trial for combination of IDE397 and AMG 193 in MTAP-deletion solid tumors. The company’s 52-week high is $24.96.
• RSI Value: 70.85
• IDYA Price Action: Shares of IDEAYA Biosciences fell 1.9% to close at $24.39 on Monday.

Biohaven Ltd. BHVN

• Biohaven recently issued overview of clinical progress, regulatory updates, and pipeline developments at R&D Day. The company has a 52-week high of $22.05.
• RSI Value: 78.88
• BHVN Price Action: Shares of Biohaven fell 0.3% to settle at $21.65 on Monday.

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