As of Nov. 25, 2024, three 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.
Conmed Corp (NYSE:CNMD)
- On Oct. 30, Conmed reported quarterly earnings of $1.05 per share which beat the analyst consensus estimate of 99 cents per share. “Our third quarter results were largely in line with our expectations, and we remain focused on getting fully back on offense,” commented Curt R. Hartman, CONMED’s Chair of the Board, President, and Chief Executive Officer. “I am particularly proud of how our teams responded to the disruption from hurricanes Helene and Milton, which temporarily impacted our employees and facilities in the Southeast as well as many of our customers.” The company's stock gained around 21% over the past month and has a 52-week high of $117.27.
- RSI Value: 70.45
- CNMD Price Action: Shares of Conmed gained 4.5% to close at $74.91 on Friday.
Madrigal Pharmaceuticals Inc (NASDAQ:MDGL)
- On Oct. 31, Madrigal Pharmaceuticals reported better-than-expected third-quarter financial results. Bill Sibold, Chief Executive Officer of Madrigal, stated, “Our U.S. launch of Rezdiffra is progressing exceptionally well driven by the outstanding execution of our team. Growing adoption by prescribers, broader payer coverage and an increasing number of patients on therapy each contributed to the strong performance. This early success highlights the critical need for effective treatments for moderate to advanced NASH/MASH, which is expected to become the leading cause of liver transplants in the U.S.” The company's stock gained around 65% over the past month and has a 52-week high of $368.29.
- RSI Value: 74.01
- MDGL Price Action: Shares of Madrigal Pharmaceuticals gained 5.5% to close at $347.45 on Friday.
Butterfly Network Inc (NYSE:BFLY)
- On Nov. 1, Butterfly Network reported better-than-expected quarterly financial results and issued FY24 revenue guidance above estimates. The company's stock gained around 78% over the past month and has a 52-week high of $3.55.
- RSI Value: 72.56
- BFLY Price Action: Shares of Butterfly Network fell 1.4% to close at $3.24 on Friday.
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