Zentalis Pharmaceuticals (ZNTL) Loses -46.3% in 4 Weeks, Here's Why a Trend Reversal May be Around the Corner

Core Viewpoint - Zentalis Pharmaceuticals, Inc. (ZNTL) has experienced significant selling pressure, resulting in a 46.3% 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) for ZNTL is currently at 26.82, suggesting that the heavy selling may be exhausting, which could lead to a price rebound as the stock seeks to return to its previous equilibrium [5]. - RSI is a momentum oscillator that ranges from 0 to 100, with a reading below 30 typically indicating that a stock is oversold [2][3]. Group 2: Fundamental Indicators - There has been a strong consensus among sell-side analysts to raise earnings estimates for ZNTL, resulting in a 13.2% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [6]. - ZNTL 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 turnaround [7].