Top 3 Health Care Stocks That May Collapse This Quarter

As of Dec. 11, 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.

Adaptive Biotechnologies Corp (NASDAQ:ADPT)

• On Dec. 7, Adaptive Biotechnologies presented new data at ASH 2024 showcasing clonoSEQ MRD testing advances and its role in guiding blood cancer treatment decisions. The company's shares gained around 6% over the past month and has a 52-week high of $7.07.
• RSI Value: 75.83                              
• ADPT Price Action: Shares of Adaptive Biotechnologies gained 4.2% to close at $6.71 on Tuesday.

NewAmsterdam Pharma Company NV (NASDAQ:NAMS)

• On Dec. 10, NewAmsterdam Pharma revealed topline data from its Phase 3 BROADWAY clinical trial evaluating obicetrapib in adult patients with atherosclerotic cardiovascular disease (ASCVD) and/or heterozygous familial hypercholesterolemia (HeFH), whose LDL-C is not adequately controlled, despite being on maximally tolerated lipid-lowering therapy. The company's stock gained around 30% over the past five days and has a 52-week high of $26.36.
• RSI Value: 81.17
• NAMS Price Action: Shares of NewAmsterdam Pharma jumped 41.4% to close at $26.19 on Tuesday.

Paragon 28 Inc (NYSE:FNA)

• On Nov. 12, Paragon 28 reported quarterly losses of 15 cents per share which met the analyst consensus estimate. The company reported quarterly sales of $62.30 million which beat the analyst consensus estimate of $60.58 million. The company's stock gained around 38% over the past month and has a 52-week high of $14.79.
• RSI Value: 77.07
• FNA Price Action: Shares of Paragon 28 gained 5% to close at $10.50 on Tuesday.

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