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, ADHD’s low RSI value isn’t the only reason to have some optimism over a coming turnaround, as there has been plenty of positive earnings estimate revision activity as of late. This is especially true when investors take a deep dive into some of these estimate revision stats and recent changes to Alcobra’s earnings consensus.
Over the past two months, investors have seen 2 earnings estimate revisions move higher, compared with one lower, at least when looking at the key current year time frame. And the consensus estimate for ADHD has also been on an upward trend over the past 60 days, as estimates have risen from -$2.27/share two months ago to just -$1.28/share right now.
If this wasn’t enough, Alcobra also has a Zacks Rank #2 (Buy) which puts it into rare company among its peers. So, given all of these factors, investors may want to consider getting in on this stock now (or holding on), as there are some favorable trends that could bubble up for this stock before long.
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