Down -7.74% in 4 Weeks, Here's Why You Should You Buy the Dip in Chimera (CIM)

Core Viewpoint - Chimera Investment (CIM) has experienced significant selling pressure, declining 7.7% over the past four weeks, but is now positioned for a potential trend reversal as it enters oversold territory, with analysts predicting better earnings than previously expected [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]. - CIM's current RSI reading is 28.62, suggesting that the heavy selling may be exhausting, indicating a potential bounce back towards equilibrium in supply and demand [5]. Group 2: Fundamental Analysis - There is strong consensus among sell-side analysts to raise earnings estimates for CIM, with a 0.6% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [7]. - CIM 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 [8].