Down 10.3% in 4 Weeks, Here's Why Cheesecake Factory (CAKE) Looks Ripe for a Turnaround

Core Viewpoint - Cheesecake Factory (CAKE) has experienced a significant downtrend, with a 10.3% decline in stock price over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to analysts' positive earnings outlook [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 indicating that a stock may be oversold [2]. - CAKE's current RSI reading is 24.76, indicating that the heavy selling pressure may be exhausting, which could lead to a price rebound as it seeks to return to equilibrium [5]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts regarding an increase in earnings estimates for CAKE, with a 0.1% rise in the consensus EPS estimate over the last 30 days, suggesting potential price appreciation [7]. - CAKE 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 indicating a potential turnaround [8].