Down -31.1% in 4 Weeks, Here's Why You Should You Buy the Dip in Relay Therapeutics (RLAY)

Core Viewpoint - Relay Therapeutics, Inc. (RLAY) has experienced a significant decline of 31.1% over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to improved earnings expectations from Wall Street analysts [1]. Group 1: Stock Performance and Technical Indicators - RLAY's stock has been under heavy selling pressure, leading to an RSI reading of 26.89, indicating it is oversold [5]. - The Relative Strength Index (RSI) is a momentum oscillator that helps identify oversold conditions when the reading falls below 30 [2]. - Stocks oscillate between overbought and oversold states, and an oversold condition may present entry opportunities for investors anticipating a rebound [3]. Group 2: Earnings Estimates and Analyst Consensus - There is a strong consensus among sell-side analysts that RLAY will report better earnings than previously predicted, with a 14.1% increase in the consensus EPS estimate over the last 30 days [6]. - RLAY 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, indicating a strong potential for a near-term turnaround [7].