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After Plunging 26% in 4 Weeks, Here's Why the Trend Might Reverse for Sprout Social (SPT)
Sprout SocialSprout Social(US:SPT) ZACKSยท2025-08-11 14:55

Core Viewpoint - Sprout Social (SPT) has experienced a significant downtrend, with a 26.1% 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 Analysis - 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] - SPT's current RSI reading is 16.23, indicating that heavy selling may be exhausting itself, which could lead to a price rebound as the stock seeks to return to its previous equilibrium of supply and demand [5] Group 2: Fundamental Analysis - There is strong consensus among sell-side analysts regarding SPT's earnings potential, with a 0.3% increase in the consensus EPS estimate over the last 30 days, suggesting that upward revisions in earnings estimates often correlate with price appreciation [6] - SPT 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, indicating a strong potential for a near-term turnaround [7]