Bears are Losing Control Over United Bankshares (UBSI), Here's Why It's a 'Buy' Now

Core Viewpoint - United Bankshares (UBSI) has experienced a decline of 6.1% 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 UBSI [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 is a strong consensus among Wall Street analysts to raise earnings estimates for UBSI, enhancing its prospects for a trend reversal [2][7]. - Over the last 30 days, the consensus EPS estimate for UBSI has increased by 4.9%, indicating analysts expect better earnings than previously predicted [8]. - UBSI 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].