Here's Why Pure Storage (PSTG) Is a Great 'Buy the Bottom' Stock Now

Core Viewpoint - Pure Storage (PSTG) has shown a downtrend recently, losing 6.2% over the past week, but a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out, suggesting that selling pressure may be exhausting, which could lead to a trend reversal [2][5]. - A hammer pattern forms when there is a small candle body with a long lower wick, indicating that despite a downtrend, buyers are starting to enter the market [4][5]. - The occurrence of this pattern at the bottom of a downtrend signals that bears may be losing control, and bulls are gaining strength [5]. Fundamental Analysis - There has been a positive trend in earnings estimate revisions for PSTG, which is a bullish indicator suggesting potential price appreciation [7]. - The consensus EPS estimate for the current year has increased by 0.8% over the last 30 days, indicating that analysts expect better earnings than previously predicted [8]. - PSTG 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].