Here's Why Amphastar (AMPH) is Poised for a Turnaround After Losing 13.1% in 4 Weeks

Core Viewpoint - Amphastar Pharmaceuticals (AMPH) has experienced a significant downtrend, with a 13.1% 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 Analysis - The Relative Strength Index (RSI) is a key technical indicator used to determine if a stock is oversold, with readings below 30 indicating oversold conditions [2]. - AMPH's current RSI reading is 29.97, suggesting that the heavy selling pressure may be exhausting, indicating a possible bounce back towards equilibrium in supply and demand [5]. Group 2: Fundamental Analysis - Analysts have shown strong consensus in raising earnings estimates for AMPH, with a 3.4% increase in the consensus EPS estimate over the last 30 days, which typically correlates with price appreciation [7]. - AMPH 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 near-term turnaround [8].