Down -11.51% in 4 Weeks, Here's Why You Should You Buy the Dip in Horizon Bancorp (HBNC)

Core Viewpoint - Horizon Bancorp (HBNC) has faced significant selling pressure, resulting in an 11.5% decline in stock price over the past four weeks, but analysts anticipate better earnings than previously expected, indicating potential for recovery [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is utilized to determine if a stock is oversold, with a reading below 30 typically indicating oversold conditions [2]. - HBNC's current RSI reading is 20.49, suggesting that the heavy selling may be exhausting itself, which could lead to a price rebound [5]. Group 2: Fundamental Indicators - There has been a consensus among sell-side analysts to raise earnings estimates for HBNC, resulting in a 0.5% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [6]. - HBNC 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, indicating a strong potential for a turnaround [7].