After Plunging -45.82% in 4 Weeks, Here's Why the Trend Might Reverse for Phathom Pharmaceuticals (PHAT)

Core Viewpoint - Phathom Pharmaceuticals, Inc. (PHAT) is experiencing significant selling pressure, with a 45.8% decline over the past four weeks, but is now positioned for a potential trend reversal as it enters oversold territory, supported by positive earnings expectations from Wall Street analysts [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to determine if a stock is oversold, with a reading below 30 typically indicating oversold conditions [2]. - PHAT's current RSI reading is 20.52, suggesting that the heavy selling may be exhausting itself, indicating a potential bounce back towards previous supply and demand equilibrium [5]. Group 2: Fundamental Analysis - There is strong consensus among sell-side analysts that earnings estimates for PHAT have increased by 12.9% over the last 30 days, which often correlates with price appreciation in the near term [7]. - PHAT 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 indicating a potential turnaround [8].