Core Viewpoint - Sunnova Energy (NOVA) has experienced an 8.1% decline in share price over the past two weeks, 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 potential bottoming out, with reduced selling pressure, which could lead to a bullish trend for the stock [2][5]. - A hammer pattern typically forms during a downtrend, where the stock opens lower, makes a new low, but then closes near or above the opening price, indicating buying interest [4][5]. - The effectiveness of the hammer pattern is contingent on its placement on the chart and should be used alongside other bullish indicators [6]. Fundamental Analysis - There has been a recent upward trend in earnings estimate revisions for NOVA, which is a positive sign for the stock's future performance [7]. - Over the last 30 days, the consensus EPS estimate for the current year has increased by 0.4%, indicating that analysts expect better earnings than previously predicted [8]. - NOVA holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, suggesting strong potential for outperformance in the market [9].
Bears are Losing Control Over Sunnova Energy (NOVA), Here's Why It's a 'Buy' Now