Steris (STE) Loses 6% in 4 Weeks, Here's Why a Trend Reversal May be Around the Corner

Core Viewpoint - Steris (STE) has experienced significant selling pressure, declining 6% over the past four weeks, but is now positioned for a potential trend reversal as it is in oversold territory, with analysts expecting better earnings than previously predicted [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a momentum oscillator that indicates whether a stock is oversold, with readings below 30 typically signaling this condition [2]. - STE's current RSI reading is 27.46, suggesting that the heavy selling pressure may be exhausting itself, indicating a potential trend reversal [5]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts that earnings estimates for STE have increased by 0.1% over the last 30 days, which usually correlates with price appreciation in the near term [7]. - STE 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 supporting the potential for a turnaround [8].