After Plunging 28% in 4 Weeks, Here's Why the Trend Might Reverse for Rigel (RIGL)

Core Viewpoint - Rigel Pharmaceuticals (RIGL) has experienced a significant downtrend, with a stock decline of 28.1% over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to improved earnings expectations from analysts [1]. Technical Analysis - The Relative Strength Index (RSI) is a key technical indicator used to determine if a stock is oversold, with readings below 30 indicating oversold conditions [2]. - RIGL's current RSI reading is 28.64, indicating that the heavy selling pressure may be exhausting itself, which could lead to a trend reversal [5]. Fundamental Analysis - Analysts covering RIGL have shown a strong consensus in raising earnings estimates for the current year, resulting in a 7.8% increase in the consensus EPS estimate over the last 30 days [7]. - An upward trend in earnings estimate revisions typically correlates with price appreciation in the near term [7]. Zacks Rank - RIGL 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 near-term turnaround [8].