Down 18.2% in 4 Weeks, Here's Why You Should You Buy the Dip in Banco Macro (BMA)

Core Viewpoint - Banco Macro (BMA) has experienced a significant downtrend, with an 18.2% decline in stock price over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to improved earnings expectations from 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 this condition [2]. - BMA's current RSI reading is 28.6, indicating that the heavy selling pressure may be exhausting, and a price reversal could be imminent [5]. Group 2: Fundamental Indicators - Analysts covering BMA have raised their earnings estimates for the current year, resulting in a 2.5% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [7]. - BMA holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [8].