Mesoblast Limited (MESO) Could Find a Support Soon, Here's Why You Should Buy the Stock Now

Core Viewpoint - Mesoblast Limited (MESO) has shown a downtrend recently, losing 10.8% over the past week, but a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging to counteract selling pressure [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out, with reduced selling pressure, suggesting a bullish outlook for the stock [2][4]. - A hammer pattern forms when there is a small difference between opening and closing prices, with a long lower wick, indicating that the stock found support after hitting a new low during a downtrend [3][4]. - The occurrence of a hammer pattern at the bottom of a downtrend signals that bears may have lost control, indicating a potential trend reversal [4]. Fundamental Analysis - There has been a positive trend in earnings estimate revisions for MESO, which is a bullish indicator, as it typically leads to price appreciation [6]. - The consensus EPS estimate for MESO has increased by 2.5% over the last 30 days, reflecting analysts' agreement on the company's potential for better earnings [7]. - MESO currently holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which historically outperform the market [8].