Here's Why Sagimet Biosciences Inc. (SGMT) is Poised for a Turnaround After Losing 15.8% in 4 Weeks

Core Viewpoint - Sagimet Biosciences Inc. (SGMT) has experienced significant selling pressure, resulting in a 15.8% decline over the past four weeks, but analysts anticipate improved earnings in the near future [1] Group 1: Technical Analysis - The Relative Strength Index (RSI) for SGMT is currently at 27.37, indicating that the stock is oversold and may be poised for a rebound as selling pressure exhausts [5] - RSI is a momentum oscillator that helps identify overbought or oversold conditions, with readings below 30 typically indicating an oversold status [2][3] Group 2: Fundamental Indicators - There has been a strong consensus among sell-side analysts to raise earnings estimates for SGMT, leading to an 8% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [7] - SGMT 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, suggesting a potential turnaround [8]