Here's Why Open Text (OTEX) is Poised for a Turnaround After Losing 13.7% in 4 Weeks

Core Viewpoint - Open Text (OTEX) has experienced significant selling pressure, resulting in a 13.7% decline over the past four weeks, but analysts anticipate better earnings than previously expected, indicating a potential rebound for the stock [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is utilized to determine if a stock is oversold, with readings below 30 indicating oversold conditions [2]. - OTEX's current RSI reading is 28.71, suggesting that the heavy selling may be exhausting itself and a trend reversal could occur soon [5]. - The RSI helps identify potential entry opportunities for investors when a stock is undervalued due to excessive selling pressure [3]. Group 2: Fundamental Indicators - There has been a strong consensus among sell-side analysts to raise earnings estimates for OTEX, leading to a 2.6% 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]. - OTEX holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, indicating a strong potential for a turnaround [8].