Akebia Therapeutics (AKBA) Loses 39.9% in 4 Weeks, Here's Why a Trend Reversal May be Around the Corner

Core Viewpoint - Akebia Therapeutics (AKBA) is experiencing significant selling pressure, having declined 39.9% 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 momentum oscillator that indicates whether a stock is oversold, with readings below 30 typically signaling this condition [2]. - AKBA's current RSI reading is 24.46, suggesting that the heavy selling may be exhausting, indicating a potential bounce back towards equilibrium in supply and demand [5]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts that earnings estimates for AKBA have increased by 100% over the last 30 days, which usually correlates with price appreciation in the near term [7]. - AKBA 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].