Down 13.1% in 4 Weeks, Here's Why You Should You Buy the Dip in Pacasmayo (CPAC)

Core Viewpoint - Pacasmayo (CPAC) has experienced a significant downtrend, with a 13.1% decline over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to improved earnings expectations from analysts [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold conditions, with a reading below 30 indicating that a stock may be oversold [2]. - CPAC's current RSI reading is 27.11, indicating that the heavy selling pressure may be exhausting, and a price reversal could occur soon [5]. Group 2: Fundamental Indicators - Analysts have raised their earnings estimates for CPAC by 14.5% over the last 30 days, which typically correlates with price appreciation in the near term [7]. - CPAC 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].