Down -24.08% 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, having declined 24.1% over the past four weeks, but is now positioned for a potential trend reversal as it is in oversold territory and analysts expect better earnings than previously predicted [1] Group 1: Stock Performance and Technical Indicators - The stock's Relative Strength Index (RSI) reading is at 20.63, indicating it is oversold and suggesting a potential reversal in trend [5] - A stock is generally considered oversold when its RSI falls below 30, which helps investors identify entry opportunities for potential rebounds [2][3] Group 2: Earnings Estimates and Analyst Consensus - There is strong agreement among sell-side analysts in raising earnings estimates for ERAS, with a 1% increase in the consensus EPS estimate over the last 30 days [6] - An upward trend in earnings estimate revisions typically correlates with price appreciation in the near term [6] Group 3: Zacks Rank and Investment Potential - 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 turnaround [7]