Down -6.8% in 4 Weeks, Here's Why You Should You Buy the Dip in FirstService (FSV)

Stock Analysis - FirstService (FSV) has experienced significant selling pressure, declining 6 8% over the past four weeks, but is now in oversold territory, indicating potential for a trend reversal [1] - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold stocks, with an RSI below 30 typically indicating oversold conditions [2] - Stocks oscillate between overbought and oversold states, and RSI helps identify potential price reversals, making it useful for spotting entry opportunities during unwarranted selling pressure [3] Technical Indicators - FSV's RSI reading of 26 92 suggests the heavy selling may be exhausting itself, potentially leading to a reversal in the stock's trend [5] - RSI has limitations and should not be used in isolation for investment decisions [4] Fundamental Indicators - Sell-side analysts covering FSV have raised earnings estimates for the current year, with the consensus EPS estimate increasing by 1 1% over the last 30 days, signaling potential price appreciation [6] - FSV holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 stocks ranked based on earnings estimate revisions and EPS surprises, further supporting its potential turnaround [7]