After Plunging -19.13% in 4 Weeks, Here's Why the Trend Might Reverse for Amarin (AMRN)

Core Viewpoint - Amarin (AMRN) has experienced significant selling pressure, resulting in a 19.1% decline over the past four weeks, but analysts anticipate improved earnings in the near future [1]. Group 1: Technical Analysis - The Relative Strength Index (RSI) for AMRN is currently at 27.62, indicating that the stock may be oversold and could be poised for a rebound [5]. - The RSI is a momentum oscillator that helps identify whether a stock is overbought or oversold, with readings below 30 typically indicating an oversold condition [2][3]. - Technical indicators suggest that the heavy selling pressure may be exhausting, leading to a potential price recovery as the stock seeks to return to its equilibrium [5][6]. Group 2: Earnings Estimates - There has been a strong consensus among sell-side analysts to raise earnings estimates for AMRN, resulting in a 27.3% increase in the consensus EPS estimate over the last 30 days [7]. - An upward trend in earnings estimate revisions is generally associated with price appreciation in the near term, indicating a positive outlook for the stock [7]. - AMRN holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate trends and EPS surprises, further supporting the potential for a turnaround [8].