Down 21.7% in 4 Weeks, Here's Why Soleno Therapeutics (SLNO) Looks Ripe for a Turnaround

Core Viewpoint - Soleno Therapeutics, Inc. (SLNO) is experiencing significant selling pressure, with a 21.7% decline over the past four weeks, but is now positioned for a potential trend reversal due to being in oversold territory and positive earnings expectations from Wall Street analysts [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a momentum oscillator that indicates whether a stock is oversold, with readings below 30 typically signaling this condition [2]. - SLNO's current RSI reading is 26.7, suggesting that the heavy selling pressure may be exhausting itself, indicating a potential trend reversal [5]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts that SLNO will report better earnings than previously predicted, with a 46.7% increase in the consensus EPS estimate over the last 30 days [7]. - The upward trend in earnings estimate revisions is generally associated with price appreciation in the near term [7]. Group 3: Analyst Ratings - SLNO 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 turnaround [8].