Down 15% in 4 Weeks, Here's Why You Should You Buy the Dip in Ferrari (RACE)

Core Viewpoint - Ferrari (RACE) has experienced a significant decline of 15% over the past four weeks, but it is now in oversold territory, indicating a potential trend reversal as analysts expect better earnings than previously predicted [1] Group 1: Technical Analysis - The Relative Strength Index (RSI) is a momentum oscillator that helps identify whether a stock is oversold, with readings below 30 indicating oversold conditions [2] - RACE's current RSI reading is 24.58, suggesting that the heavy selling pressure may be exhausting itself, leading to a potential trend reversal [5] Group 2: Fundamental Analysis - Over the last 30 days, the consensus EPS estimate for RACE has increased by 6.1%, indicating a positive trend in earnings estimate revisions, which typically correlates with price appreciation [7] - RACE 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 turnaround [8]