Down 8.3% in 4 Weeks, Here's Why You Should You Buy the Dip in Suncor Energy (SU)

Core Viewpoint - Suncor Energy (SU) has experienced a significant downtrend, with an 8.3% decline over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround as analysts expect better earnings than previously predicted [1]. Group 1: Technical Analysis - 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]. - SU's current RSI reading is 29.15, indicating that heavy selling may be exhausting itself, which could lead to a price rebound as the stock seeks to return to its equilibrium of supply and demand [5]. Group 2: Fundamental Analysis - There is strong consensus among sell-side analysts regarding SU's earnings potential, with a 2.6% increase in the consensus EPS estimate over the last 30 days, suggesting that upward revisions in earnings estimates often correlate with price appreciation [7]. - SU holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate trends and EPS surprises, further indicating a potential for a near-term turnaround [8].