After Plunging -30.17% in 4 Weeks, Here's Why the Trend Might Reverse for Foghorn Therapeutics (FHTX)

Core Viewpoint - Foghorn Therapeutics Inc. (FHTX) has experienced significant selling pressure, resulting in a 30.2% decline in stock price over the past four weeks, but analysts anticipate improved earnings reports in the near future [1] Group 1: Stock Performance and Technical Analysis - FHTX's stock is currently in oversold territory, with a Relative Strength Index (RSI) reading of 27.37, indicating a potential for price reversal [5][7] - The stock's heavy selling appears to be exhausting itself, suggesting a possible return to equilibrium in supply and demand [5] - The RSI is a momentum oscillator that helps identify oversold conditions, typically when the reading falls below 30 [2][3] Group 2: Earnings Estimates and Analyst Sentiment - Over the last 30 days, the consensus earnings per share (EPS) estimate for FHTX has increased by 5.2%, indicating a positive trend in earnings revisions [7] - FHTX 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 stock's potential for a turnaround [8]