After Plunging -12.22% in 4 Weeks, Here's Why the Trend Might Reverse for ABM Industries (ABM)

Core Viewpoint - ABM Industries (ABM) has experienced significant selling pressure, resulting in a 12.2% decline in stock price over the past four weeks, but analysts anticipate better earnings than previously predicted, indicating a potential turnaround for the company [1]. Group 1: Technical Analysis - The stock's Relative Strength Index (RSI) is currently at 27.13, indicating that it is in oversold territory, as a reading below 30 typically signifies this condition [3][8]. - The heavy selling of ABM shares appears to be exhausting, suggesting a possible trend reversal as the stock approaches a more balanced supply and demand equilibrium [6]. - The RSI is a momentum oscillator that measures the speed and change of price movements, commonly used to identify oversold conditions [8]. Group 2: Analyst Insights - ABM 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, which supports the potential for a stock turnaround [5]. - There has been a consensus among sell-side analysts to raise earnings estimates for ABM, resulting in a 2.3% increase in the consensus EPS estimate over the last 30 days, which typically correlates with price appreciation in the near term [7].