Down 17.7% in 4 Weeks, Here's Why Spero Therapeutics (SPRO) Looks Ripe for a Turnaround

Core Viewpoint - Spero Therapeutics, Inc. (SPRO) has experienced a significant downtrend with a 17.7% 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]. - SPRO's current RSI reading is 27.97, 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 Indicators - There is a strong consensus among sell-side analysts regarding SPRO, with earnings estimates for the current year being raised by 44.8% over the last 30 days, suggesting a positive outlook for price appreciation [7]. - SPRO 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].