Down -14.32% in 4 Weeks, Here's Why SM Energy (SM) Looks Ripe for a Turnaround

Core Viewpoint - SM Energy (SM) has experienced a significant downtrend, with a stock decline of 14.3% over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to improved earnings expectations from analysts [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]. - SM's current RSI reading is 24.15, indicating that the heavy selling pressure may be exhausting, which could lead to a price rebound [5]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts regarding SM's earnings, with a 7.4% increase in the consensus EPS estimate over the last 30 days, suggesting potential price appreciation [6]. - SM holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a near-term turnaround [7].