January 21, 2026
Finance

Health Care's Undervalued Stocks Show Potential for Uptick This Month

Examining the momentum indicators and recent developments of select health care equities such as Enovis, Hims & Hers Health, and Travere Therapeutics

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Summary

Several health care stocks displaying oversold technical signals are positioned for potential gains as evidenced by recent RSI metrics and analyst coverage. Notable companies within this group include Travere Therapeutics, Hims & Hers Health, and Enovis, each experiencing declines in stock price but supported by various market factors such as regulatory timelines and analyst price targets.

Key Points

The Relative Strength Index (RSI) is a crucial momentum indicator signaling that several health care stocks currently hold oversold status, with values near or below 30.
Travere Therapeutics’ supplemental New Drug Application for Filspari has had its FDA review deadline extended to April 13, coinciding with a near 23% stock decline over the past month.
Analyst coverage has commenced for Hims & Hers Health and Enovis, with moderate to strong price targets and ratings reflecting cautious optimism amid recent price drops.
Technical analysis tools and momentum scores suggest potential for price reversals or breakouts in these health care stocks, though market volatility remains a relevant consideration.

In the current market environment, certain health care equities have exhibited technical characteristics that might signal investment opportunities based on their recent momentum trends. By focusing on the Relative Strength Index (RSI), a widely used momentum indicator, investors can gauge whether a stock is potentially oversold, which might indicate a forthcoming rebound in price.

The RSI measures the magnitude of recent price changes, comparing average gains to average losses over a set period to determine overbought or oversold conditions. An RSI value under 30 typically classifies a security as oversold, suggesting that it may be undervalued and possibly primed for upward price movement in the short term.

Several notable players in the health care sector are trading near or below this RSI threshold, drawing attention from analysts and traders alike. Below is an examination of three such stocks, their recent price actions, associated analyst sentiments, and relevant news impacting their trajectories.

Travere Therapeutics Inc (NASDAQ: TVTX)

Travere Therapeutics has recently faced a significant development concerning its drug approval process. On January 13, the U.S. Food and Drug Administration (FDA) extended the review timeline for Travere’s supplemental New Drug Application (sNDA) for Filspari (sparsentan), a treatment targeted at focal segmental glomerulosclerosis (FSGS), a rare kidney disorder. The revised Prescription Drug User Fee Act (PDUFA) date has been set for April 13.

This delay in regulatory progress has been mirrored by the company’s stock performance, which has declined approximately 23% over the past month, highlighting market apprehension regarding the extended evaluation period. The share price dropped to a 52-week low of $12.91 during this timeframe.

Despite these challenges, the stock’s RSI remains at 29.7, indicating that the market may have oversold it. Most recently, on the Tuesday preceding this report, shares of Travere Therapeutics saw a marginal increase of 0.3%, closing at $27.94, a contrast to the prior downward trend. The company’s momentum score stands at 91.85, reflecting strong underlying market interest despite recent volatility.

Hims & Hers Health Inc (NYSE: HIMS)

Hims & Hers Health presents another case of a health care stock trading with an RSI near oversold levels, currently at 29.7. This company has also experienced a decrease in its share price, falling approximately 13% over the last month and reaching a 52-week low of $23.97.

On the analyst front, Evercore ISI Group’s Mark Mahaney initiated coverage of Hims & Hers on January 12, assigning it an In-Line rating and setting a price target of $33. This analyst action indicates measured optimism about the company's prospects, balanced by cautious sentiment regarding short-term performance.

On the most recent trading day mentioned, shares closed at $30.47, marking a 2.9% decline for the day. The stock’s downward price movement was captured through technical analysis tools like Benzinga Pro's charting feature, which helped identify prevailing trends.

Enovis Corp (NYSE: ENOV)

Enovis is another prominent health care company whose shares are currently oversold based on RSI metrics. The RSI value stands at 29.6, placing it just below the oversold threshold. The company's stock price has dropped roughly 14% over the last five days, hitting a 52-week low of $22.98.

On January 6, BTIG analyst Ryan Zimmerman initiated coverage on Enovis with a Buy rating and established a price target of $41, offering a bullish outlook relative to current pricing. This analyst endorsement suggests confidence in Enovis's longer-term value proposition notwithstanding recent downside volatility.

The most recent session saw the stock fall 3.7%, closing at $23.09. However, technical signals from Benzinga Pro alerted to a potential breakout in shares of Enovis, indicating that momentum could shift toward more positive price action.

Technical and Market Insights

The RSI readings near or below 30 for these stocks reflect technical oversold conditions, often prompting traders to anticipate reversals or near-term rallies. However, these metrics should be considered alongside fundamental developments such as regulatory decisions, analyst coverage, and overall sector dynamics.

Analysts emphasize that financial markets frequently exhibit non-linear movements, where volatility creates both risks and opportunities. Systems designed to identify actionable setups during these periods can help investors navigate fluctuating trader sentiment.

While past performance figures cited from 2025 trades illustrate the potential for significant gains, these historical results do not guarantee future outcomes. Nonetheless, monitoring momentum indicators in conjunction with fundamental news remains an essential element of informed investment strategies in the health care space.


StockRSI ValueRecent Price Action52-Week LowAnalyst Commentary
Travere Therapeutics (TVTX)29.7+0.3% to $27.94$12.91FDA PDUFA date extended to April 13
Hims & Hers Health (HIMS)29.7-2.9% to $30.47$23.97Initiated In-Line rating; $33 price target
Enovis (ENOV)29.6-3.7% to $23.09$22.98Initiated Buy rating; $41 price target

Investors should consider these elements carefully when evaluating potential entry points in the health care sector amid prevailing oversold conditions and evolving market data.

Risks
  • The FDA has extended the review timeline for a key drug application by Travere Therapeutics, introducing regulatory uncertainty and potential delays in product commercialization.
  • Recent sharp price declines across these stocks may indicate ongoing market concerns or fundamental weaknesses that could continue to pressure valuations.
  • Analyst ratings and price targets, while positive, do not guarantee stock performance and remain subject to market and sector volatility.
  • Technical indicators such as RSI, although helpful, cannot predict market movements with certainty and should be used in conjunction with comprehensive fundamental analysis.
Disclosure
Education only / not financial advice
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Ticker Sentiment
ENOV - neutral HIMS - neutral TVTX - neutral
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