Array Digital (AD) Loses 29.2% in 4 Weeks, Here's Why a Trend Reversal May be Around the Corner

Core Viewpoint - Array Digital Infrastructure (AD) has experienced a significant decline of 29.2% over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround as analysts expect better earnings than previously predicted [1]. Technical Analysis - The Relative Strength Index (RSI) is a key technical indicator used to determine if a stock is oversold, with readings below 30 indicating oversold conditions [2]. - AD's current RSI reading is 25.33, indicating that the heavy selling pressure may be exhausting, and a reversal in trend could occur soon [5]. Fundamental Analysis - There is a strong consensus among sell-side analysts regarding AD's earnings estimates, with a notable increase of 72.1% in the consensus EPS estimate over the last 30 days, which typically correlates with price appreciation [6]. - AD 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 [7].