Down 11.5% in 4 Weeks, Here's Why You Should You Buy the Dip in Sonic Automotive (SAH)

Group 1 - Sonic Automotive (SAH) has experienced significant selling pressure, resulting in an 11.5% stock price decline over the past four weeks, but analysts expect better earnings than previously predicted [1] - The Relative Strength Index (RSI) for SAH is currently at 29.77, indicating that the stock is in oversold territory and may be due for a rebound [5] - There has been a consensus among sell-side analysts to raise earnings estimates for SAH, with a 1.3% increase in the consensus EPS estimate over the last 30 days, suggesting potential price appreciation [7] Group 2 - SAH 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, indicating a strong potential for a turnaround [8]