Galapagos (GLPG) Loses -21.19% in 4 Weeks, Here's Why a Trend Reversal May be Around the Corner

Core Viewpoint - Galapagos NV (GLPG) has experienced significant selling pressure, resulting in a 21.2% decline over the past four weeks, but analysts anticipate better earnings than previously expected, indicating potential for recovery [1]. Technical Analysis - The Relative Strength Index (RSI) is utilized to determine if GLPG is oversold, with a current RSI reading of 19.28 suggesting that selling pressure may be exhausting, paving the way for a potential rebound [2][5]. - Stocks oscillate between overbought and oversold conditions, and the RSI helps identify price reversal points, indicating that GLPG may be undervalued due to excessive selling [3]. Fundamental Analysis - There has been a strong consensus among sell-side analysts to raise earnings estimates for GLPG, leading to a 34.3% increase in the consensus EPS estimate over the last 30 days, which typically correlates with price appreciation [6]. - GLPG 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 stock's potential for a turnaround [7].