Amidst the ebb and flow of the stock market, some health care equities currently stand as diamonds in the rough, offering value to discerning investors.

The Relative Strength Index (RSI) serves as a crucial barometer for market momentum, giving traders insight into short-term performance. When the RSI falls below 30, it signals an oversold stock, often indicating potential for an upward swing.

Here’s a breakdown of four standout companies trading with RSIs close to or below 30:

Mesoblast Limited MESO

• On Jan. 19, the FDA granted Rare Pediatric Disease Designation to Mesoblast’s Revascor® for treating children with congenital heart disease. Despite this positive development, the company’s stock dipped by approximately 16% over the past month and hit a 52-week low of $1.61.
• RSI Value: 29.61
• MESO Price Action: Shares of Mesoblast saw a modest 1.1% increase, closing at $1.79 on Thursday.

MultiPlan Corporation MPLN

• On Jan. 4, the appointment of Travis Dalton as President and CEO from March 1, 2024, was announced by MultiPlan. In spite of this leadership change, the company’s stock tumbled by around 40% over the past month, hitting a 52-week low of $0.61.
• RSI Value: 25.95
• MPLN Price Action: Shares of MultiPlan closed at $1.02 on Thursday.

Neogen Corporation NEOG

• On Jan. 9, Neogen reported second-quarter FY24 sales, experiencing a slight 0.2% year-on-year decline to $229.6 million, missing consensus estimates. Its core revenue also dipped by 0.9%. Consequently, the company adjusted its FY24 revenue guidance to $935 million-$955 million, down from the prior projection of $955 million-$985 million and the consensus of $960.65 million. This downward trajectory led to a 21% fall in the stock over the past month, reaching a 52-week low of $14.44.
• RSI Value: 29.75
• NEOG Price Action: Shares of Neogen saw a 1% decline, closing at $16.20 on Thursday.

Humana Inc. HUM

• On Jan. 25, Humana reported a fourth-quarter adjusted EPS loss of 11 cents, a significant downturn from EPS income of $1.97 a year ago, missing the consensus of 5 cents. Humana unveiled its initial fiscal year 2024 EPS outlook, predicting ‘approximately $14.87’ on a GAAP basis, and ‘approximately $16.00’ on an adjusted basis, in contrast to the consensus of $28.91. Consequently, the company’s shares witnessed around a 14% drop in the last five days, driving the stock close to its 52-week low of $342.69.
• RSI Value: 19.43
• HUM Price Action: Shares of Humana plunged by 11.7%, closing at $355.36 on Thursday.

Investor sentiments may just be missing a trick here, tempting the possibility of grabbing these potentially undervalued stocks. With their recent downturns, these equities could be on the brink of a fortune-changing resurgence, inviting intrepid investors to participate in their potential upward trajectory.

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