Top 5 Health Care Stocks That May Collapse In July

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.

Nanobiotix S.A. NBTX

• Nanobiotix announced that the first patient has been injected in Phase 1/2 study of NBTXR3 for advanced solid tumors. The company’s stock has a 52-week high of $10.11. .
• RSI Value: 82.58
• NBTX Price Action: Shares of Nanobiotix jumped 17.5% to close at $9.19 on Friday.

Evelo Biosciences, Inc. EVLO

• Evelo Biosciences terminated its sublease agreement with Bio-Rad Laboratories Inc. The company’s stock has a 52-week high of $65.80.
• RSI Value: 84.15
• EVLO Price Action: Shares of Evelo Biosciences jumped 17.8% to close at $11.61 on Friday.

Repligen Corporation RGEN

• Repligen reported first-quarter sales of $182.66 million, down 12% Y/Y as reported, beating the consensus of $181.43 million. The company expanded its single-use fluid management offering by acquiring FlexBiosys Inc recently. "Strategically, we continue to build out our Fluid Management portfolio with the April acquisition of FlexBiosys, adding single-use bags to our suite of products," Chief Executive Officer J. Hunt said. The company has a 52-week high of $262.26.
• RSI Value: 74.03
• RGEN Price Action: Shares of Repligen jumped 11.3% to close at $175.34 on Friday.

Tandem Diabetes Care, Inc. TNDM

• Tandem Diabetes Care received FDA approval for the Tandem Mobi insulin pump for people with diabetes age 6 and up, expanding the company's portfolio of products. The company’s 52-week high is $70.81.
• RSI Value: 70.21
• TNDM Price Action: Shares of Tandem Diabetes Care jumped 8.6% to close at $33.06 on Friday.

Zoetis Inc. ZTS

• The FDA recently approved Zoetis’ Librela (bedinvetmab) for the control of pain associated with osteoarthritis (OA) in dogs. The company has a 52-week high of $187.82.
• RSI Value: 71.73
• ZTS Price Action: Shares of Zoetis gained 6.9% to settle at $183.51 on Friday.

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