Down -22.89% in 4 Weeks, Here's Why You Should You Buy the Dip in Erasca (ERAS)

Core Viewpoint - Erasca, Inc. (ERAS) is experiencing significant selling pressure, with a 22.9% decline over the past four weeks, but is now positioned for a potential trend reversal as it enters oversold territory, supported by analyst expectations of better earnings than previously predicted [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] - ERAS has an RSI reading of 21.15, suggesting that heavy selling may be exhausting, indicating a potential bounce back towards equilibrium in supply and demand [5] Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts that earnings estimates for ERAS will improve, with a 1% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [6] - ERAS 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 near-term turnaround [7]