SPS Commerce (SPSC) Loses -9.8% in 4 Weeks, Here's Why a Trend Reversal May be Around the Corner

Core Viewpoint - SPS Commerce (SPSC) is experiencing significant selling pressure, having declined 9.8% over the past four weeks, but is now positioned for a potential trend reversal as it enters oversold territory, with analysts predicting better earnings than previously expected [1]. Group 1: Stock Performance and Indicators - The stock's Relative Strength Index (RSI) is at 27.53, indicating it is oversold, which suggests a potential reversal in trend as selling pressure may be exhausting [3]. - A stock is generally considered oversold when its RSI falls below 30, which helps investors identify potential entry points for a rebound [2]. Group 2: Earnings Estimates and Analyst Consensus - Over the last 30 days, the consensus EPS estimate for SPSC has increased by 2.2%, indicating a positive trend in earnings revisions that typically correlates with price appreciation [3]. - SPS Commerce holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a turnaround [3].