Down 15.6% in 4 Weeks, Here's Why You Should You Buy the Dip in Brown & Brown (BRO)

Core Viewpoint - Brown & Brown (BRO) has experienced significant selling pressure, resulting in a 15.6% decline over the past four weeks, but analysts anticipate better earnings than previously expected, indicating potential for recovery [1] Group 1: Technical Analysis - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold conditions, with a reading below 30 typically indicating a stock is oversold [2] - BRO's current RSI reading of 18.44 suggests that the heavy selling may be exhausting, indicating a possible rebound towards previous supply and demand equilibrium [5] Group 2: Fundamental Analysis - There is a strong consensus among sell-side analysts to raise earnings estimates for BRO, with a 0.2% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [6] - BRO 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 [7]