Allogene Therapeutics (ALLO) Loses -31.94% in 4 Weeks, Here's Why a Trend Reversal May be Around the Corner

Core Viewpoint - Allogene Therapeutics (ALLO) has experienced a significant decline of 31.9% over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround as analysts expect better earnings than previously predicted [1]. Group 1: Stock Performance and Technical Indicators - ALLO's stock has been under heavy selling pressure, leading to an RSI reading of 25.87, indicating it is oversold [5]. - The Relative Strength Index (RSI) is a momentum oscillator that helps identify oversold conditions when the reading falls below 30 [2]. - Stocks oscillate between overbought and oversold states, and an oversold condition may present entry opportunities for investors anticipating a rebound [3]. Group 2: Analyst Sentiment and Earnings Estimates - There is a strong consensus among sell-side analysts to raise earnings estimates for ALLO, resulting in a 0.4% increase in the consensus EPS estimate over the last 30 days [7]. - An upward trend in earnings estimate revisions typically correlates with price appreciation in the near term [7]. - ALLO holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate trends and EPS surprises, indicating a strong potential for a turnaround [8].