Down -20.84% in 4 Weeks, Here's Why UniFirst (UNF) Looks Ripe for a Turnaround

Core Viewpoint - UniFirst (UNF) has experienced a significant decline of 20.8% over the past four weeks, but it is now positioned for a potential trend reversal as it is in oversold territory, supported by analysts predicting better earnings than previously estimated [1]. Group 1: Stock Performance and Technical Indicators - UNF's stock is currently in oversold territory with an RSI reading of 24.2, indicating that the heavy selling pressure may be exhausting itself [5]. - The Relative Strength Index (RSI) is a momentum oscillator that helps identify whether a stock is oversold, typically when the RSI falls below 30 [2][3]. Group 2: Earnings Estimates and Analyst Consensus - There is strong agreement among sell-side analysts regarding an increase in earnings estimates for UNF, with a 4.1% rise in the consensus EPS estimate over the last 30 days [7]. - An upward trend in earnings estimate revisions is generally associated with price appreciation in the near term [7]. Group 3: Zacks Rank and Investment Potential - UNF holds a Zacks Rank of 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 [8].