Down 9.9% in 4 Weeks, Here's Why You Should You Buy the Dip in Skyward (SKWD)

Core Viewpoint - Skyward Specialty Insurance (SKWD) has experienced significant selling pressure, resulting in a 9.9% decline over the past four weeks, but analysts anticipate better earnings than previously expected, indicating potential for recovery [1]. Technical Analysis - The Relative Strength Index (RSI) for SKWD is currently at 27.89, suggesting that the stock is oversold and may be nearing a reversal point due to exhaustion of selling pressure [5]. - RSI is a momentum oscillator that helps identify overbought or oversold conditions, with readings below 30 typically indicating an oversold status [2][3]. Fundamental Indicators - There has been a consensus among sell-side analysts to raise earnings estimates for SKWD, resulting in a 0.2% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [7]. - SKWD 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].