Down 12% in 4 Weeks, Here's Why You Should You Buy the Dip in ScanSource (SCSC)

Core Viewpoint - ScanSource (SCSC) has experienced significant selling pressure, declining 12% over the past four weeks, but is now positioned for a potential trend reversal as it is in oversold territory, with analysts expecting better earnings than previously predicted [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements, with a reading below 30 indicating that a stock is considered oversold [2]. - SCSC's current RSI reading is 29.82, suggesting that the heavy selling pressure may be exhausting itself, indicating a potential trend reversal [5]. Group 2: Fundamental Analysis - There is strong consensus among sell-side analysts that earnings estimates for SCSC have increased by 3.9% over the last 30 days, which typically correlates with price appreciation in the near term [7]. - SCSC 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].