Down 12.5% in 4 Weeks, Here's Why You Should You Buy the Dip in TIM (TIMB)

Core Viewpoint - TIM S.A. Sponsored ADR (TIMB) has experienced a significant decline of 12.5% over the past four weeks, but it is now positioned for a potential trend reversal as it is in oversold territory, supported by analysts predicting better earnings than previously expected [1]. Group 1: Technical Analysis - The Relative Strength Index (RSI) is a momentum oscillator that indicates whether a stock is oversold, with readings below 30 typically signaling this condition [2]. - TIMB's current RSI reading is 28.3, suggesting that the heavy selling pressure may be exhausting itself, indicating a potential trend reversal [5]. - RSI helps investors identify entry opportunities when a stock is undervalued due to unwarranted selling pressure [3]. Group 2: Fundamental Analysis - Analysts have raised earnings estimates for TIMB, with the consensus EPS estimate increasing by 2.6% over the last 30 days, which often correlates with price appreciation [7]. - TIMB holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating strong potential for a turnaround [8].