ALX Oncology Holdings (ALXO) Could Find a Support Soon, Here's Why You Should Buy the Stock Now

Core Viewpoint - ALX Oncology Holdings Inc. (ALXO) has experienced a bearish trend, losing 19.6% over the past week, but the formation of a hammer chart pattern suggests a potential trend reversal as buying interest may be increasing [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out, with reduced selling pressure, suggesting that bulls may be gaining control [2][4]. - A hammer pattern forms when there is a small candle body with a long lower wick, typically occurring during a downtrend, signaling a potential reversal if it appears at the bottom of the trend [3][4]. Fundamental Analysis - There has been a notable upward trend in earnings estimate revisions for ALXO, with a 28.5% increase in the consensus EPS estimate over the last 30 days, indicating analysts expect better earnings than previously predicted [6][7]. - ALXO holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which historically outperforms the market [8].