Down 10.4% in 4 Weeks, Here's Why You Should You Buy the Dip in FirstService (FSV)

Core Viewpoint - FirstService (FSV) is experiencing significant selling pressure, having declined 10.4% over the past four weeks, but is now positioned for a potential trend reversal as it enters oversold territory, with analysts predicting better earnings than previously expected [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 typically indicating that a stock is oversold [2]. - FSV's current RSI reading is 27.35, suggesting that the heavy selling pressure may be exhausting itself, indicating a potential trend reversal [5]. Group 2: Fundamental Analysis - There is strong consensus among sell-side analysts that earnings estimates for FSV have increased by 1.2% over the last 30 days, which often correlates with price appreciation in the near term [7]. - FSV 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].