The most oversold stocks in the health care sector presents an opportunity to buy into undervalued companies.



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 oversold when the RSI is below 30, according to Benzinga Pro.



Here's the latest list of major oversold players in this sector, having an RSI near or below 30.



<h3>PepGen Inc (NASDAQ:PEPG)</h3>



<ul>
<li>On March 30, PepGen announced clinical data from the 5 mg/kg multiple ascending dose cohort of the ongoing Phase 2 FREEDOM2-DM1 trial in patients with myotonic dystrophy type 1. The company's stock fell around 70% over the past month and has a 52-week low of $0.89.</li>



<li>RSI Value: 20.5</li>



<li>PEPG Price Action: Shares of PepGen fell 8.2% to close at $1.67 on Tuesday.</li>



<li>Benzinga Pro’s signals feature notified of a potential breakout in VRDN shares. </li>
</ul>



<figure class="wp-block-image size-full is-resized"></figure>



<h3>KALA BIO Inc (NASDAQ:KALA)          </h3>



<ul>
<li>On April 1, Kala Bio announced the engagement of Dr. Saeid Babaei, PhD, MBA, as Senior Scientific Advisor. “We will be undertaking a rigorous review of our data to evaluate whether amended indications or revised development strategies may merit further consideration. There are many examples in biopharma where a refined indication strategy has created significant value, and we believe our Phase 2 dataset warrants a disciplined reassessment,” said Avi Minkowitz, Chief Executive Officer of Kala Bio. The company's stock fell around 38% over the past month and has a 52-week low of $0.15.</li>



<li>RSI Value: 29.3</li>



<li>KALA Price Action: Shares of KALA BIO slipped 6.7% to close at $0.16 on Tuesday.</li>



<li>Benzinga Pro’s charting tool helped identify the trend in KALA stock. </li>
</ul>



<figure class="wp-block-image size-full is-resized"></figure>



<h3>Viridian Therapeutics Inc (NASDAQ:VRDN)</h3>



<ul>
<li>On April 7, Goldman Sachs analyst Richard Law maintained Viridian Therapeutics with a Buy and lowered the price target from $36 to $31, while RBC Capital analyst Lisa Walter maintained the stock with an Outperform rating and cut the price target from $42 to $30. The company's stock fell around 53% over the past month and has a 52-week low of $9.90.</li>



<li>RSI Value: 20</li>



<li>VRDN Price Action: Shares of Viridian Therapeutics gained 0.4% to close at $13.96 on Tuesday.</li>



<li>Edge Stock Ratings: 9.26 Momentum score.</li>
</ul>



<figure class="wp-block-image size-full is-resized"></figure>



Learn more about BZ Edge Rankings—click to see scores for other stocks in the sector and see how they compare.



Photo via Shutterstock

SBIO

VRDN

The health care sector presents buying opportunities for undervalued stocks with low RSI values. Key stocks include PepGen Inc (PEPG), KALA BIO Inc (KALA), and Viridian Therapeutics Inc (VRDN). PepGen's stock fell 70% recently, with an RSI of 20.5. KALA BIO's stock dropped 38%, RSI at 29.3. Viridian's stock decreased 53%, RSI at 20, but analysts maintain a Buy rating. These oversold stocks may see potential breakouts as they are considered undervalued.

Top 3 Health Care Stocks Which Could Blast Off This Quarter