GW Pharmaceuticals plc (NASDAQ:GWPH) has been on a bit of a cold streak lately, but there might be light at the end of the tunnel for this overlooked cannabis stock. And for technical investors, there is some hope when looking at GW stock given that, according to its RSI reading of 27.54, it is now in oversold territory.
What Is RSI?
RSI stands for “Relative Strength Index,” and it is a popular indicator used by technically focused investors. It compares the average of gains in days that closed up to the average of losses in days that closed down; readings above 70 suggest an asset is overbought, while an RSI below 30 suggests undervalued conditions are present.
Yet the low RSI value of GW stock isn’t the only reason to have some optimism about a coming turnaround by GWPH, as a meaningful number of analysts have raised their estimates of GW’s earnings recently.
Over the past two months, nine analysts have increased their 2019 earnings estimates for GWPH, compared with none who has lowered his or her EPS estimate. And the consensus EPS estimate for GWPH has also been on an upward trend over the past 60 days, as it has risen by 91% over the last two months.
Additionally, GW stock has a Zacks Rank #1 (Strong Buy) which puts it into rare company among its peers. So, given all of these factors, investors may want to consider buying GW stock now (or, if they’ve already bought GW stock, holding onto their shares of GW), as some favorable trends could emerge for GW stock before long. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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