Bears are Losing Control Over Mesoblast Limited (MESO), Here's Why It's a 'Buy' Now

Core Viewpoint - Mesoblast Limited (MESO) has experienced a bearish trend recently, losing 12.3% 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 potential bottom in the stock price, suggesting that selling pressure may be exhausting and that bulls could be gaining control [2][5]. - A hammer pattern forms when there is a small candle body with a long lower wick, typically occurring during a downtrend, signaling a possible reversal if it appears at the bottom of the trend [4][5]. - The effectiveness of the hammer pattern is enhanced when used alongside other bullish indicators, as its strength is dependent on its placement on the chart [6]. Fundamental Analysis - There has been a positive trend in earnings estimate revisions for MESO, which is a bullish indicator suggesting potential price appreciation in the near term [7]. - The consensus EPS estimate for MESO has increased by 0.6% over the last 30 days, indicating that analysts expect better earnings than previously predicted [8]. - MESO 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].