Bears are Losing Control Over Outbrain (OB), Here's Why It's a 'Buy' Now

Core Viewpoint - Outbrain Inc. (OB) shares have recently declined by 18.4% over the past week, but the formation of a hammer chart pattern suggests potential support and a possible trend reversal in the future [1][2]. Technical Analysis - The hammer chart pattern indicates a nearing bottom with likely subsiding selling pressure, suggesting a bullish case for the stock [2]. - A hammer pattern forms when there is a small difference between opening and closing prices, with a long lower wick indicating buying interest after 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 - Recent upward revisions in earnings estimates for Outbrain enhance the prospects for a trend reversal, as trends in earnings estimate revisions are strongly correlated with near-term stock price movements [6]. - The consensus EPS estimate for Outbrain has increased by 33.3% over the last 30 days, indicating strong agreement among Wall Street analysts regarding the company's potential for better earnings [7]. - Outbrain currently holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [8].