Down -8.73% in 4 Weeks, Here's Why Essential Utilities (WTRG) Looks Ripe for a Turnaround

Core Viewpoint - Essential Utilities (WTRG) has experienced significant selling pressure, resulting in an 8.7% 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 Indicators - WTRG is currently in oversold territory with a Relative Strength Index (RSI) reading of 20.88, suggesting that the heavy selling may be exhausting itself, which could lead to a price rebound [5]. - The RSI is a momentum oscillator that helps identify whether a stock is oversold, typically when the reading falls below 30 [2][3]. Group 2: Earnings Estimates and Analyst Sentiment - Over the last 30 days, the consensus EPS estimate for WTRG has increased by 0.2%, indicating a positive trend in earnings estimate revisions, which often correlates with price appreciation [6]. - WTRG holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a turnaround [7].