Top 5 Health Care Stocks That May Fall Off A Cliff This Month

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.

Werewolf Therapeutics, Inc. HOWL

Werewolf Therapeutics released preliminary results from initial monotherapy dose-escalation cohorts of an ongoing Phase 1/1b trial of WTX-124 in patients with advanced or metastatic solid tumors. The company’s stock has a 52-week high of $4.5690. .
RSI Value: 77.40
HOWL Price Action: Shares of Werewolf Therapeutics jumped 47.4% to close at $3.17 on Friday.

Dermata Therapeutics, Inc. DRMA

Dermata Therapeutics said it has completed start-up activities necessary to support its DMT310 Phase 3 STAR-1 trial in acne. The company’s stock has a 52-week high of $12.16.
RSI Value: 71.80
DRMA Price Action: Shares of Dermata Therapeutics jumped 36% to close at $0.8198 on Friday.

CVRx, Inc. CVRX

CVRx announced that the Centers for Medicare and Medicaid Services (CMS) has reassigned the Barostim implant procedure for procedures performed in the outpatient setting as part of the 2024 Medicare Hospital Outpatient Prospective Payment System (OPPS) final rule. "We sincerely appreciate the consideration taken by CMS of the resource requirements associated with the Barostim implant procedure. We believe that reassignment to APC 1580 will facilitate increased access to the therapy for Medicare patients with heart failure by offering facilities sufficient reimbursement for the procedure," said Nadim Yared, President and CEO of CVRx. The company has a 52-week high of $19.94.
RSI Value: 81.68
CVRX Price Action: Shares of CVRx jumped 29.3% to close at $17.61 on Friday.

Owens & Minor, Inc. OMI

Owens & Minor reported better-than-expected third-quarter financial results and issued FY23 guidance. “Our performance in the third quarter is another strong indication that our business strategy and execution are working, and that we are beginning to realize the benefits of the Operating Model Realignment Program,” said Edward A. Pesicka, President & Chief Executive Officer of Owens & Minor. The company’s 52-week high is $22.86.
RSI Value: 84.50
OMI Price Action: Shares of Owens & Minor surged 27.1% to close at $19.71 on Friday.

Aura Biosciences, Inc. AURA

Aura Biosciences posted a wider loss for the second quarter. "As we build momentum across our portfolio, we are happy to welcome Drs. Bruce Brown and Anthony Daniels as our Therapeutic Area Heads in Urologic Oncology and Ocular Oncology, respectively, as well as Dr. Richard Mountfield as our new Senior Vice President of Regulatory Affairs and Quality. These key appointments are critical in supporting our corporate growth and expansion of our clinical programs in two important oncology therapeutic areas with high unmet medical needs for patients," said Elisabet de los Pinos, Ph.D., Chief Executive Officer of Aura. The company has a 52-week high of $14.38.
RSI Value: 80.72
AURA Price Action: Shares of Aura Biosciences rose 16.1% to settle at $11.98 on Friday.