Benzinga - by Avi Kapoor, Benzinga Staff Writer.
As of April 26, 2024, four stocks in the health care sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.
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, according to Benzinga Pro.
Here's the latest list of major overbought players in this sector.
Fusion Pharmaceuticals Inc. (NASDAQ:FUSN)
- AstraZeneca, through a subsidiary, will acquire all of Fusion’s outstanding shares for a price of $21.00 per share in cash at closing plus a non-transferable CVR representing the contingent right to receive $3.00/share in cash payable upon the achievement of a specified regulatory milestone, pursuant and subject to the terms and conditions of a contingent value rights agreement. The company's stock gained around 408% over the past six months and has a 52-week high of $21.55.
- RSI Value: 78.74
- FUSN Price Action: Shares of Fusion Pharmaceuticals closed at $21.40 on Thursday.
- AstraZeneca reported first-quarter sales of $12.68 billion, up 17% year over year (+19% at constant currency), slightly below the consensus of $11.83 billion. The company's stock gained around 10% over the past five days and has a 52-week high of $75.81.
- RSI Value: 82.50
- AZN Price Action: Shares of AstraZeneca gained 5.4% to close at $75.03 on Thursday.
- On April 24, Boston Scientific reported better than expected first-quarter earnings and issued guidance. The company's stock gained around 8% over the past five days and has a 52-week high of $74.39.
- RSI Value: 76.34
- BSX Price Action: Shares of American Express gained 0.5% to close at $73.26 on Thursday.
- On April 18, Elevance Health reported first-quarter revenues of $42.3 billion, up 0.9% year over year, marginally missing the consensus of $42.6 billion. "First quarter results reflect disciplined execution of our strategic initiatives during a dynamic time for our industry," CEO Gail Boudreaux said. "We are making significant progress expanding Carelon's capabilities, scaling our flywheel for enterprise growth, and delivering results for all stakeholders." The company's stock jumped around 4% over the past month and has a 52-week high is $542.07.
- RSI Value: 70.18
- ELV Price Action: Shares of Elevance Health gained 1.1% to close at $539.68 on Thursday.
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