Oversold Opportunities in the Health Care Sector

When it comes to navigating the choppy waters of the stock market, the health care sector can offer a bountiful lighthouse for investors looking to capitalize on undervalued opportunities. Oversold stocks present a tantalizing chance to snag undervalued shares. One of the most effective tools for discerning such opportunities is the Relative Strength Index (RSI), a well-regarded momentum indicator that compares a stock’s strength on up days to its strength on down days. When the RSI drops below 30, it typically points to an oversold condition, suggesting the stock may be due for an upswing.

Scilex Holding Co (SCLX)

• Scilex Holding Co recently gained FDA approval for precision dosing in its GLOPERBA label. Despite this positive development, the stock has plummeted by approximately 23% in the past month, hitting a 52-week low of $0.73.
• RSI Value: 27.36
• SCLX Price Action: Shares closed at $1.02 on Monday, after a 1.9% dip.

Patterson Companies, Inc. (PDCO)

• Patterson Companies reported a 2.2% year-over-year decline in net sales for the first quarter of 2025 due to various factors. This disappointing performance led to a 15% drop in the stock price over the last month, reaching a 52-week low of $20.17.
• RSI Value: 26.32
• PDCO Price Action: The stock closed at $20.48 on Monday, down 1.1%.

AMN Healthcare Services, Inc. (AMN)

• AMN Healthcare set third-quarter revenue guidance below market estimates, causing a 13% decline in the share price over the past five days, hitting a 52-week low of $43.00. Despite this setback, the company has been making strides in fortifying its presence in the healthcare talent solutions market.
• RSI Value: 27.11
• AMN Price Action: Shares of AMN Healthcare closed at $45.70 on Monday, showing a minor gain of 0.1%.

It is worth noting that while these stocks may currently be in oversold territory, there is always the potential for a reversal in trend. Investors should conduct comprehensive research and consider various factors before making any investment decisions.