HomeStreet (HMST) Loses -13.39% in 4 Weeks, Here's Why a Trend Reversal May be Around the Corner

Core Viewpoint - HomeStreet (HMST) has experienced significant selling pressure, declining 13.4% over the past four weeks, but is now positioned for a potential trend reversal as it enters oversold territory, with analysts predicting better earnings than previously estimated [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 typically indicating oversold conditions [2] - HMST's current RSI reading is 25.11, suggesting that heavy selling may be exhausting, indicating a potential bounce back towards equilibrium [5] Group 2: Fundamental Analysis - There is strong consensus among sell-side analysts that earnings estimates for HMST have significantly increased, with a 1337.5% rise in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [6] - HMST 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 near-term turnaround [7]