UniFirst Corporation (UNF) shares surged 9.18% during Wednesday's intraday trading session, marking a significant reversal from its recent downward trend. The sudden upswing comes as analysts and technical indicators suggest the stock may be poised for a rebound after entering oversold territory.
The company's stock had experienced a steep decline of 20.8% over the past four weeks, pushing its Relative Strength Index (RSI) down to 24.2, well below the oversold threshold of 30. This technical indicator, combined with positive sentiment from Wall Street analysts regarding UniFirst's earnings potential, appears to have triggered renewed investor interest in the uniform rental and workplace supplies provider.
Adding to the bullish sentiment, sell-side analysts have been revising their earnings estimates upward for UniFirst. Over the last 30 days, the consensus EPS estimate for UNF has increased by 4.1%, suggesting improved financial performance expectations. Moreover, UniFirst currently holds a Zacks Rank #2 (Buy), placing it in the top 20% of stocks based on earnings estimate revisions and EPS surprises, further supporting the case for a potential turnaround.
