Benzinga - by Avi Kapoor, Benzinga Staff Writer.
As of May 9, 2024, five 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.
Zai Lab Limited (NASDAQ:ZLAB)
- On May 8, Zai Lab posted better-than-expected quarterly results. “Our first quarter results demonstrate strong commercial execution and pipeline progress across our potential first- and best-in-class product portfolio,” said Dr. Samantha Du, Founder, Chairperson, and Chief Executive Officer of Zai Lab. The company's stock gained around 3% over the past month and has a 52-week high of $37.92.
- RSI Value: 72.24
- ZLAB Price Action: Shares of Zai Lab fell 0.7% to close at $16.57 on Wednesday.
- On May 8, Tarsus Pharmaceuticals reported better-than-expected first-quarter financial results. “This was another tremendous quarter for Tarsus as we continued building a new category in eye care to serve millions of Demodex blepharitis patients with XDEMVY,” said Bobak Azamian, M.D., Ph.D., Chief Executive Officer and Chairman of Tarsus. The company's stock gained around 15% over the past five days and has a 52-week high of $40.40.
- RSI Value: 74.27
- TARS Price Action: Shares of Tarsus Pharmaceuticals fell 1.8% to close at $37.35 on Wednesday.
- On May 7, Edgewise Therapeutics named Arlene Morris to its Board of Directors. The company's stock gained around 29% over the past month and has a 52-week high of $21.60.
- RSI Value: 74.25
- EWTX Price Action: Shares of Edgewise Therapeutics fell 1.6% to close at $20.89 on Wednesday.
- On May 1, GSK reported better-than-expected first-quarter results and raised its 2024 core operating profit guidance. GSK expects 2024 adjusted EPS growth of 8% to 10%, up from the 6%-9% growth previously forecast. It expects 2024 sales to grow in the upper end of its 5% to 7% forecast range. The company's stock jumped around 10% over the past month and has a 52-week high is $44.33.
- RSI Value: 72.85
- GSK Price Action: Shares of GSK fell 0.02% to close at $44.14 on Wednesday.
- AstraZeneca has declared a worldwide cessation of its COVID-19 vaccine, Vaxzevria, due to an "excess of updated vaccines." The company's stock jumped around 13% over the past month and has a 52-week high of $77.16.
- RSI Value: 75.58
- AZN Price Action: Shares of AstraZeneca climbed 0.9% to close at $76.97 on Wednesday.
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