Top 3 Health Care Stocks That May Crash In August

As of Aug 14, 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.

Cardinal Health Inc (NYSE:CAH)

• On Aug. 14, Cardinal Health posted better-than-expected quarterly results. “Fiscal 2024 marked a year of strong operational execution and record financial results, delivered in tandem with key strategic progress in the portfolio,” said Jason Hollar, CEO of Cardinal Health. The company's stock gained around 9% over the past month and has a 52-week high of $116.04.
• RSI Value: 72.55                              
• CAH Price Action: Shares of Cardinal Health gained 1.9% to close at $102.58 on Tuesday.

Catalyst Pharmaceuticals Inc (NASDAQ:CPRX)

• On Aug. 7, Catalyst Pharmaceuticals reported better-than-expected second-quarter financial results. “Since the onset of this year, we have advanced with continued momentum, propelled by the strong performance of our established product portfolio and the successful U.S. commercial launch of AGAMREE. Our accomplishments have significantly strengthened our financial position, aligning with our revenue guidance for the year, and we believe that we are on track to achieve the upper end of our previously provided total revenue forecast,” stated Richard J. Daly, President and CEO of Catalyst. The company's stock gained around 19% over the past five days and has a 52-week high of $19.86.
• RSI Value: 73.73
• CPRX Price Action: Shares of Catalyst Pharmaceuticals gained 1.5% to close at $19.59 on Tuesday.

Verona Pharma PLC – ADR (NASDAQ:VRNA)

• On Aug. 8, Verona Pharma posted a narrower-than-expected quarterly loss. “We are very pleased today to announce that Ohtuvayre (ensifentrine) is now available in the US for the maintenance treatment of chronic obstructive pulmonary disease (“COPD”) in adults,” said David Zaccardelli, Pharm. D., President and Chief Executive Officer. The company's stock gained around 26% over the past five days and has a 52-week high of $28.26.
• RSI Value: 71.22
• VRNA Price Action: Shares of Verona Pharma gained 8.3% to close at $26.73 on Tuesday.

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