As of May 4, 2026, 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.



<h3>Avanos Medical Inc (NYSE:AVNS)</h3>



<ul>
<li>On April 14, Avanos Medical announced a going-private deal. American Industrial Partners will buy the medtech company in an all-cash transaction at an enterprise value of approximately $1.272 billion. The company's stock gained around 78% over the past month and has a 52-week high of $24.75.</li>



<li>RSI Value: 90                                   </li>



<li>AVNS Price Action: Shares of Avanos Medical gained 0.2% to close at $24.66 on Friday.</li>



<li>Edge Stock Ratings: 96.28 Momentum score. </li>
</ul>



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<h3>Apellis Pharmaceuticals Inc (NASDAQ:APLS)</h3>



<ul>
<li>On March 31, Apellis Pharmaceuticals announced that it will be acquired by Biogen for $41 per share. “I am incredibly proud of the Apellis team and what we have achieved, including bringing two transformational medicines – SYFOVRE® and EMPAVELI® – to patients and building an innovative pipeline leveraging our deep expertise in complement science,” said Cedric Francois, M.D., Ph.D., co-founder and Chief Executive Officer of Apellis. The company's stock gained around 100% over the past six months and has a 52-week high of $41.00.</li>



<li>RSI Value: 86.8</li>



<li>APLS Price Action: Shares of Apellis Pharmaceuticals gained 0.1% to close at $40.96 on Friday.</li>
</ul>



<h3>Cerus Corp (NASDAQ:CERS)</h3>



<ul>
<li>On April 30, Cerus reported better-than-expected first-quarter financial results and raised its FY26 sales guidance. “We delivered a strong start to 2026, with first quarter performance driven by strength across our business, in particular by increasing demand for our INTERCEPT Fibrinogen Complex,” said William “Obi” Greenman, Cerus’ president and chief executive officer. The company's stock gained around 47% over the past month and has a 52-week high of $3.15.</li>



<li>RSI Value: 86</li>



<li>CERS Price Action: Shares of Cerus jumped 34% to close at $2.72 on Friday.</li>
</ul>



Curious about other BZ Edge Rankings? Click here to discover how similar stocks measure up.



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APLS

CERS

AVNS

Three healthcare stocks, Avanos Medical (AVNS), Apellis Pharmaceuticals (APLS), and Cerus Corp (CERS), are showing signs of being overbought, with RSI values of 90, 86.8, and 86 respectively. AVNS has gained 78% recently due to a going-private deal, APLS surged 100% following an acquisition announcement by Biogen, and CERS reported strong Q1 results, raising its sales guidance. Investors should be cautious as these stocks may face a downturn.

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