ZACKSยท2025-08-04 14:56Core Viewpoint - NetEase (NTES) has shown a downtrend recently, losing 6% 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 bottom in the stock price, suggesting that selling pressure may be exhausting [2][5]. - A hammer pattern forms when there is a small candle body with a long lower wick, indicating that the stock opened lower, made a new low, but closed near its opening price, reflecting some buying interest [4][5]. - This pattern is significant when it occurs at the bottom of a downtrend, signaling that bears may be losing control [5]. Fundamental Analysis - There has been a positive trend in earnings estimate revisions for NTES, which is a bullish indicator suggesting potential price appreciation [7]. - Over the last 30 days, the consensus EPS estimate for the current year has increased by 0.3%, indicating that analysts expect better earnings than previously predicted [8]. - NTES currently holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [9][10].