Ares Commercial Real Estate (ACRE) Loses 9.2% in 4 Weeks, Here's Why a Trend Reversal May be Around the Corner

Core Viewpoint - Ares Commercial Real Estate (ACRE) has experienced significant selling pressure, resulting in a 9.2% decline over the past four weeks, but analysts anticipate improved earnings in the near future [1] Group 1: Technical Indicators - The Relative Strength Index (RSI) is utilized to determine if ACRE is oversold, with a current reading of 27.81 indicating potential for a price reversal [2][5] - Stocks oscillate between overbought and oversold conditions, and the RSI helps identify when a stock may be undervalued due to excessive selling [3] Group 2: Fundamental Indicators - Analysts have raised earnings estimates for ACRE by 750% over the last 30 days, suggesting a positive trend that typically leads to price appreciation [6] - ACRE holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, indicating strong potential for a turnaround [7]