Top 5 Health Care Stocks That May Collapse 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.

Sientra, Inc. SIEN

Sientra recently announced FDA clearance for its AlloX2 Pro Tissue Expander. The company’s stock has a 52-week high of $16.50. .
RSI Value: 71.90
SIEN Price Action: Shares of Sientra rose 16.3% to close at $3.57 on Friday.

CareDx, Inc CDNA

CareDx recently reported worse-than-expected first-quarter sales and filed for a mixed shelf. "The first quarter delivered strong operational execution against our 2022 strategic plan, reflected in our record testing services volumes, record patient and digital solutions revenue, and second consecutive quarter of testing services cash collections exceeding testing services revenue," said Reg Seeto, CEO and President of CareDx. The company’s stock has a 52-week high of $27.33.
RSI Value: 70.04
CDNA Price Action: Shares of CareDx gained 20.6% to close at $10.09 on Friday.

COMPASS Pathways plc CMPS

COMPASS Pathways recently secured up to $50 million in term loan facility with Hercules Capital. The company has a 52-week high of $21.50.
RSI Value: 74.15
CMPS Price Action: Shares of COMPASS Pathways rose 5.8% to close at $9.88 on Friday.

Minerva Neurosciences, Inc. NERV

Minerva Neurosciences recently announced a $20 million private placement priced at a premium to the market. The company’s 52-week high is $15.27.
RSI Value: 73.18
NERV Price Action: Shares of Minerva Neurosciences rose 4.6% to close at $10.71 on Friday.

Cardinal Health, Inc. CAH

Tivic Health Systems inked an agreement with Cardinal Health for the distribution of its products. The company has a 52-week high of $95.10.
RSI Value: 72.28
CAH Price Action: Shares of Cardinal Health fell 0.3% to settle at $93.97 on Friday.