Down -10.08% in 4 Weeks, Here's Why El Pollo Loco (LOCO) Looks Ripe for a Turnaround

Core Viewpoint - El Pollo Loco Holdings (LOCO) has experienced significant selling pressure, resulting in a 10.1% decline over the past four weeks, but analysts anticipate better earnings than previously expected, indicating potential for recovery [1]. Group 1: Stock Performance and Technical Analysis - LOCO's stock is currently in oversold territory with a Relative Strength Index (RSI) reading of 25.77, suggesting a possible reversal in trend [5]. - The stock's price has been under pressure, but the heavy selling appears to be exhausting, indicating a potential return to equilibrium in supply and demand [5]. - The consensus EPS estimate for LOCO has increased by 3.3% over the last 30 days, which typically correlates with price appreciation in the near term [5]. Group 2: Analyst Ratings and Market Position - LOCO 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 stock's potential for a turnaround [6].