After Plunging 17.5% in 4 Weeks, Here's Why the Trend Might Reverse for Tencent Music Entertainment Group (TME)

Core Viewpoint - Tencent Music Entertainment Group (TME) has experienced a significant decline of 17.5% over the past four weeks, but it is now in oversold territory, indicating a potential trend reversal supported by analyst consensus for better earnings than previously predicted [1] Group 1: Technical Analysis - The Relative Strength Index (RSI) is a momentum oscillator that helps identify whether a stock is oversold, with readings below 30 indicating oversold conditions [2] - TME's current RSI reading is 26.72, suggesting that the heavy selling pressure may be exhausting, and a trend reversal could occur soon [5] Group 2: Fundamental Analysis - Analysts have raised earnings estimates for TME, with a 1.2% increase in the consensus EPS estimate over the last 30 days, indicating potential price appreciation in the near term [6] - TME 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 stock's potential turnaround [7]