Spero Therapeutics (SPRO) Loses -9.32% in 4 Weeks, Here's Why a Trend Reversal May be Around the Corner

Core Viewpoint - Spero Therapeutics, Inc. (SPRO) is experiencing a downtrend with a 9.3% decline over the past four weeks, but it is in oversold territory, suggesting a potential turnaround due to analysts' positive earnings outlook [1] Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold stocks, with a reading below 30 indicating oversold conditions [2] - SPRO's current RSI reading is 27.37, suggesting that the heavy selling pressure may be exhausting, indicating a possible price rebound [5] Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts regarding SPRO, with a 6.3% increase in the consensus EPS estimate over the last 30 days, which typically correlates with price appreciation [6] - SPRO 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 near-term turnaround [7]