Down -34.03% in 4 Weeks, Here's Why Desktop Metal (DM) Looks Ripe for a Turnaround

Core Viewpoint - Desktop Metal, Inc. (DM) is experiencing a potential turnaround as analysts raise earnings estimates, despite a recent decline in stock price due to selling pressure [1][2]. Group 1: Stock Performance - DM has lost 34% of its value over the past four weeks, indicating significant selling pressure [2]. - The stock is currently in oversold territory, with an RSI reading of 22.39, suggesting a potential reversal in trend [3][4]. Group 2: Earnings Estimates - Over the last 30 days, the consensus EPS estimate for DM has increased by 2.7%, reflecting a positive outlook from sell-side analysts [1]. - DM 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 [1]. Group 3: Technical Indicators - The Relative Strength Index (RSI) is used to identify oversold conditions, with a reading below 30 typically indicating a stock is oversold [3]. - The current RSI reading for DM suggests that the heavy selling may be exhausting itself, indicating a potential for price recovery [3][4].