Tarsus Pharmaceuticals (TARS) Loses -15.59% in 4 Weeks, Here's Why a Trend Reversal May be Around the Corner
Tarsus Pharmaceuticals, Inc. (TARS) has been beaten down lately with too much selling pressure. While the stock has lost 15.6% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.
We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.
RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.
Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.
So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefitting from the inevitable rebound.
However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.
The RSI reading of 29.83 for TARS is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand.
This technical indicator is not the only factor that calls for a potential rebound for the stock. There is a fundamental indicator as well. A strong agreement among sell-side analysts covering TARS in raising earnings estimates for the current year has led to an increase in the consensus EPS estimate by 19.5% over the last 30 days. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.
Moreover, TARS currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Tarsus Pharmaceuticals, Inc. (TARS) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
8 minutes ago
- Yahoo
Meta Platforms (META) Bets Big on AGI With $10 Billion Push and New AI Dream Team
Meta Platforms, Inc. (NASDAQ:) is one of the 10 AI Stocks on Wall Street's Radar. On June 10, Bloomberg News reported that the company's CEO, Mark Zuckerberg, is setting up a team of experts to achieve what is known as 'artificial general intelligence' (AGI), or machines that can match or surpass human capabilities. Citing sources, the report has revealed that the new AI team is being set up along with a reported investment of over $10 billion in Scale AI. It further reported how Scale AI founder Alexandr Wang is expected to join the group after a deal is done. Reportedly, Zuckerberg is planning to personally recruit around 50 people, including a new head of AI research for the AGI team. The decision is being made after looking at the performance and reception of Meta's latest large language model, Llama 4, the report stated. While we acknowledge the potential of META as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None.
Yahoo
12 minutes ago
- Yahoo
Tesla (TSLA) Faces Delivery Slump as Wells Fargo Sticks With $120 Price Target
Tesla, Inc. (NASDAQ:) is one of the 10 AI Stocks on Wall Street's Radar. On June 10, Wells Fargo reiterated an 'Underweight' rating on the stock with a $120 price target. The firm is sticking with its underweight rating, stating that the company's Q2 deliveries are 'on track for another poor quarter.' 'Most of TSLA May delivery results are now out. Once again, global deliveries are trending meaningfully weaker, with May trending 23% lower y/y and Q2 QTD trending 21% lower y/y. All three key regions are double-digit % lower, with EU the worst.' North America, Europe, and China— Tesla's key regions— have been experiencing double-digit percentage declines, the firm noted, further revealing that the 'fundamentals of the core auto business continue to weaken.' It further said that 'order' pricing on the website appears stable over the LTM,' but 'aggressive financing promotions continue to act as price cuts.' This, coupled with lower leverage, is a risk to Q2 margins. Attention is now being diverted to Austin Robotaxi deployment on June 12, which the firm doubts 'the likely limited debut will be enough to overshadow the poor fundamentals.' The firm also pointed toward China, Tesla's second-largest market, which is 'trending 22% lower QTD.' The firm asserted how the 'competition in China is beginning to take its toll on TSLA's business,' as local OEMs like BYD (SZ:002594) and Chery 'continue to undercut TSLA on pricing.' While we acknowledge the potential of TSLA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13 minutes ago
- Yahoo
J.P. Morgan Sees Major Revenue Potential for Cisco From Next-Gen Products
Cisco Systems, Inc. (NASDAQ:CSCO) is one of the best Dow stocks to invest in. According to a detailed report from J.P. Morgan, Cisco Systems, Inc. (NASDAQ:CSCO) is positioned for a potential boost in revenue as it prepares for a wave of upgrades and replacements in its Campus infrastructure, driven by the upcoming release of its next-generation Catalyst switch series, expected next week. The firm has an Overweight rating on the stock and a price target of $73. J.P. Morgan analysts, led by Samik Chatterjee, made the following comment: "We expect to see the launch of Catalyst-2026 switches to support revenue tailwinds for the company, driven largely by an ASP uplift associated with the next-generation product and a faster adoption ramp for Catalyst-2026 relative to the Catalyst 9K series. We forecast +3% port shipment growth, in line with historical trends for Cisco, to remain consistent going forward, and to lead to a medium-term revenue growth CAGR of +6% in Campus revenue for Cisco relative to +3% in the past few years." Cisco Systems, Inc. (NASDAQ:CSCO)'s fiscal third-quarter 2025 results, released in mid-May, led to several upward revisions in analyst ratings and price targets, fueled by strong performance in networking and growing momentum in artificial intelligence. Following the earnings, Wells Fargo raised its rating on the stock from Equal-weight to Overweight and increased its price target from $72 to $75. The company has benefited from the global expansion of AI, securing new agreements in markets such as Saudi Arabia and the UAE. Cisco has also stepped into the quantum computing space. Chatterjee further said: "Historically, Cisco has tended to upgrade its flagship Catalyst campus portfolio every 6-7 years. The company is likely to launch their next-generation Catalyst product portfolio—the next generation of the Catalyst 9K series—later this year (likely at Cisco Live 2025 next week) with the products being commercially available in 2026." Its annual Cisco Live event is taking place from June 8 to 12 in San Diego. While we acknowledge the potential of CSCO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None. Sign in to access your portfolio
