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Eloxx Pharmaceuticals (ELOX) Is in Oversold Territory: What's Next?

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Eloxx Pharmaceuticals, Inc. (ELOX - Free Report) has been on a bit of a cold streak lately, but there might be light at the end of the tunnel for this overlooked stock. And for technical investors there is some hope when looking at ELOX given that, according to its RSI reading of 28.21, 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.

Other Factors

Yet, ELOX’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 Eloxx Pharmaceuticals’ earnings consensus.

Over the past two months, investors have seen 2 earnings estimate revision move higher, compared with none lower, at least when looking at the key current year time frame. And the consensus estimate for ELOX has also been on an upward trend over the past 60 days, as estimates have risen by 16.7% over the last two months.

If this wasn’t enough, Eloxx Pharmaceuticals 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. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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