Perrigo (PRGO) Loses 16.3% in 4 Weeks, Here's Why a Trend Reversal May be Around the Corner

Core Viewpoint - Perrigo (PRGO) has experienced a significant downtrend, with a 16.3% 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 Indicators - The Relative Strength Index (RSI) is a key technical indicator used to determine if a stock is oversold, with a reading below 30 typically indicating this condition [2]. - PRGO's current RSI reading is 21.24, indicating that the heavy selling pressure may be exhausting itself, which could lead to a reversal in the stock's trend [5]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts regarding an increase in earnings estimates for PRGO, with a 0.3% rise in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [7]. - PRGO 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].