The healthcare sector is currently experiencing a wave of oversold stocks, presenting a potential buying opportunity for investors seeking undervalued companies. The Relative Strength Index (RSI), a momentum indicator used to gauge a stock’s strength, can be a valuable tool for identifying oversold assets. When the RSI falls below 30, it typically signals that a stock is oversold, and potentially poised for a rebound.
Here are three major healthcare players currently exhibiting RSI values near or below 30, making them potential candidates for investment consideration:
Scilex Holding Co (SCLX)
: On August 29, Scilex Holding announced FDA final approval for precision dosing on its GLOPERBA label. Despite this positive development, the company’s stock has declined by approximately 23% over the past month, reaching a 52-week low of $0.73. With an RSI value of 27.36, SCLX is currently considered oversold. On Monday, shares of Scilex Holding closed at $1.02, down 1.9%.
Patterson Companies, Inc. (PDCO)
: Patterson Companies reported first-quarter 2025 net sales of $1.54 billion, down 2.2% year-over-year. The decline was primarily attributed to the impact of the Change Healthcare cybersecurity attack on their dental segment, along with lower sales in their companion animal business. This news led to a 15% drop in the company’s stock price over the past month, reaching a 52-week low of $20.17. With an RSI value of 26.32, PDCO is currently considered oversold. On Monday, shares of Patterson Companies closed at $20.48, down 1.1%.
AMN Healthcare Services, Inc. (AMN)
: AMN Healthcare issued third-quarter consolidated revenue guidance below estimates on August 8. While the company highlighted progress in strengthening its client position, the revenue guidance resulted in a 13% decline in its share price over the past five days. AMN’s stock reached a 52-week low of $43.00. With an RSI value of 27.11, AMN is considered oversold. On Monday, shares of AMN Healthcare closed at $45.70, up 0.1%.It is important to note that the RSI is just one factor to consider when evaluating potential investments. It’s crucial to conduct thorough research and consider other factors like company fundamentals, market conditions, and individual risk tolerance before making any investment decisions.
