Down 10.9% in 4 Weeks, Here's Why Amer Movil (AMX) Looks Ripe for a Turnaround

Core Viewpoint - Amer Movil (AMX) has experienced a significant downtrend, with a 10.9% 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 Analysis - The Relative Strength Index (RSI) is a key technical indicator used to determine if a stock is oversold, with readings below 30 indicating oversold conditions [2]. - AMX's current RSI reading is 29.38, suggesting that the heavy selling pressure may be exhausting, indicating a possible price rebound [5]. - The RSI helps investors identify potential entry points for stocks that have fallen below their fair value due to excessive selling [3]. Group 2: Fundamental Analysis - Analysts have shown strong consensus in raising earnings estimates for AMX, with a 0.4% increase in the consensus EPS estimate over the last 30 days, which typically correlates with price appreciation [7]. - AMX 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 near-term turnaround [8].