Down 6.6% in 4 Weeks, Here's Why You Should You Buy the Dip in Alvotech (ALVO)

Core Viewpoint - Alvotech (ALVO) is experiencing significant selling pressure, with a 6.6% 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 momentum oscillator that helps identify whether a stock is oversold, with readings below 30 indicating oversold conditions [2]. - ALVO's current RSI reading of 28.6 suggests 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 that earnings estimates for ALVO have increased by 6.3% over the last 30 days, which typically correlates with price appreciation in the near term [7]. - ALVO 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 indicating a potential turnaround [8].