Down 6.5% in 4 Weeks, Here's Why Ameren (AEE) Looks Ripe for a Turnaround

Core Viewpoint - Ameren (AEE) is experiencing significant selling pressure, having declined 6.5% 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] Technical Analysis - The Relative Strength Index (RSI) is a momentum oscillator that indicates whether a stock is oversold, with readings below 30 suggesting oversold conditions [2] - AEE's current RSI reading of 28.99 indicates that heavy selling may be exhausting, suggesting a potential bounce back towards equilibrium in supply and demand [5] Fundamental Analysis - There is a strong consensus among sell-side analysts that earnings estimates for AEE will improve, with a 0.2% increase in the consensus EPS estimate over the last 30 days, which typically correlates with price appreciation [7] - AEE 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, indicating a strong potential for a near-term turnaround [8]