Top 5 Health Care Stocks That Should Keep You Up At Night

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.

Structure Therapeutics Inc. GPCR

• Structure Therapeutics recently released results from the Phase 1b multiple ascending dose (MAD) study of GSBR-1290 in healthy, overweight, or obese individuals. The company also announced a private placement of 21.6 million shares and 2.4 million newly designated non-voting shares at $12.49 per share, with gross proceeds of $300 million. The company’s stock has a 52-week high of $69.96. .
• RSI Value: 79.61
• GPCR Price Action: Shares of Structure Therapeutics fell 1.7% to close at $67.61 on Wednesday.

Olink Holding AB OLK

• Thermo Fisher Scientific announced a deal to acquire Olink Holding for about $3.1 billion, including net cash of around $143 million. The company’s stock has a 52-week high of $26.47.
• RSI Value: 82.85
• OLK Price Action: Shares of Olink Holding fell 0.6% to close at $24.83 on Wednesday.

Intercept Pharmaceuticals, Inc. ICPT

• Italy-based Alfasigma agreed to acquire Intercept Pharmaceuticals for $19.00 per share in cash. The company has a 52-week high of $21.86.
• RSI Value: 75.21
• ICPT Price Action: Shares of Intercept Pharmaceuticals closed at $18.82 on Wednesday.

NextGen Healthcare, Inc. NXGN

• NextGen Healthcare posted better-than-expected quarterly earnings. "The team produced solid financial and operational results this quarter as we look forward to the next chapter in the company’s history," said David Sides, president and chief executive officer of NextGen Healthcare. The company’s 52-week high is $23.89.
• RSI Value: 80.45
• NXGN Price Action: Shares of NextGen Healthcare closed at $23.86 on Wednesday.

HealthStream, Inc. HSTM

• HealthStream reported a year-over-year increase in third-quarter EPS results. "HealthStream’s performance in the third quarter of 2023 was strong and on target with our expectations, which included both record quarterly revenues and record adjusted EBITDA," said Robert A. Frist, Jr., Chief Executive Officer, HealthStream. The company has a 52-week high of $27.69.
• RSI Value: 78.79
• HSTM Price Action: Shares of HealthStream rose 0.4% to settle at $25.30 on Wednesday.

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