Here's Why Oaktree Specialty Lending (OCSL) is Poised for a Turnaround After Losing 9.3% in 4 Weeks

Core Viewpoint - Oaktree Specialty Lending (OCSL) has faced significant selling pressure, resulting in a 9.3% decline over the past four weeks, but analysts anticipate better earnings than previously expected, indicating a potential turnaround for the stock [1]. Technical Analysis - The Relative Strength Index (RSI) is utilized to determine if OCSL is oversold, with a current reading of 28.65 suggesting that selling pressure may be exhausting, potentially leading to a price rebound [2][5]. - RSI serves as a momentum oscillator that measures price movement speed and change, oscillating between zero and 100, with readings below 30 indicating oversold conditions [2][3]. Fundamental Indicators - There is a consensus among sell-side analysts that earnings estimates for OCSL have increased by 0.3% over the last 30 days, which typically correlates with price appreciation in the near term [7]. - OCSL 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 stock's potential for a turnaround [8].