As of Aug 26, 2024, two 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.
Beigene Ltd (NASDAQ:BGNE)
- On Aug. 7, BeiGene posted better-than-expected second-quarter financial results. "This was a tremendous second quarter and an inflection point as BeiGene achieved positive non-GAAP operating income with rapidly increasing global revenues and continued financial discipline. Having now reached this milestone, we will further build on our differentiated, strategic capabilities as a leading, global oncology innovator," said John V. Oyler, Co-Founder, Chairman and CEO of BeiGene. The company's stock gained around 19% over the past month and has a 52-week high of $219.64.
- RSI Value: 72.54
- BGNE Price Action: Shares of Beigene fell 0.9% to close at $193.82 on Friday.
Halozyme Therapeutics, Inc. (NASDAQ:HALO)
- On Aug. 6, Halozyme Therapeutics reported better-than-expected second-quarter financial results. "Our strong financial results reflect another quarter of double-digit royalty revenue, EBITDA and earnings growth. We remain on track to deliver on our financial guidance for the full year that was recently raised following the issuance and validation of a new EU patent covering the ENHANZE rHuPH20 product. In the quarter, we also expanded ENHANZE into neurology treatment with Roche's EU and UK approval of Ocrevus SC, while also extending our reach into auto-immune diseases with argenx's FDA approval for VYVGART Hytrulo for the treatment of CIDP," said Dr. Helen Torley, president and chief executive officer of Halozyme. The company's stock gained around 12% over the past month and has a 52-week high of $62.86.
- RSI Value: 76.12
- HALO Price Action: Shares of Halozyme Therapeutics gained 1.8% to close at $62.72 on Friday.
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