Core Viewpoint - CompoSecure, Inc. (CMPO) has experienced significant selling pressure, resulting in a 23.1% decline in stock price over the past four weeks, but analysts anticipate better earnings than previously predicted, indicating a potential turnaround for the stock [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is utilized to identify oversold stocks, with a reading below 30 typically indicating oversold conditions [2]. - CMPO's current RSI reading is 28.3, suggesting that the heavy selling pressure may be exhausting, and a trend reversal could be imminent [5]. Group 2: Fundamental Analysis - There has been a consensus among sell-side analysts to raise earnings estimates for CMPO, with a 1.3% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [6]. - CMPO 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 near-term turnaround [7].
Down -23.1% in 4 Weeks, Here's Why You Should You Buy the Dip in CompoSecure (CMPO)