Top 2 Health Care Stocks That May Collapse This Quarter

Core Insights - Two stocks in the health care sector are showing signs of being overbought, which may concern momentum-focused investors [1]. Group 1: Terns Pharmaceuticals Inc (TERN) - On September 9, Terns Pharmaceuticals announced top-line data from its Phase 1 trial for TERN-601, aimed at assessing safety and tolerability in adults with obesity or overweight [3]. - The stock has increased approximately 19% over the past month, reaching a 52-week high of $10.03 [3]. - The Relative Strength Index (RSI) for Terns Pharmaceuticals is at 73.09, indicating it is overbought [3]. - On the same day, shares closed at $7.81 after a gain of 4.7% [3]. Group 2: Immunovant Inc (IMVT) - On September 9, Immunovant reported positive results from the Phase 2a trial of batoclimab for Graves' Disease, highlighting significant unmet medical needs [4]. - The stock has risen around 17% over the past month, with a 52-week high of $45.58 [4]. - The RSI for Immunovant is at 72.34, also indicating it is overbought [4]. - Shares closed at $34.03 after a surge of 1.2% [4].