Down 11.6% in 4 Weeks, Here's Why You Should You Buy the Dip in Light & Wonder (LNW)

Core Viewpoint - Light & Wonder (LNW) has experienced a significant downtrend, with an 11.6% decline 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 Indicators - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold conditions, with a reading below 30 typically indicating that a stock is oversold [2]. - LNW's current RSI reading is 26.89, indicating that the heavy selling pressure may be exhausting, which could lead to a price rebound as the stock seeks to return to its previous equilibrium [5]. Group 2: Fundamental Analysis - Analysts covering LNW have shown strong consensus in raising earnings estimates, with a 2.8% increase in the consensus EPS estimate over the last 30 days, which often correlates with near-term price appreciation [7]. - LNW 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].