Core Viewpoint - LivePerson (LPSN) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The change in a company's future earnings potential, as indicated by earnings estimate revisions, is strongly correlated with near-term stock price movements [3]. - Institutional investors utilize earnings estimates to determine the fair value of a company's shares, leading to buying or selling actions that affect stock prices [3]. LivePerson's Earnings Outlook - The recent rating upgrade for LivePerson reflects an improvement in the company's underlying business, which is expected to positively influence its stock price [4]. - Over the past three months, the Zacks Consensus Estimate for LivePerson has increased by 1.9% [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [6]. - LivePerson's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9].

Core Viewpoint - LivePerson (LPSN) has experienced a bearish trend recently, losing 11.1% in 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 a downtrend, characterized by a small candle body and a long lower wick, suggesting that bears may be losing control [4][5]. - The occurrence of a hammer pattern at the bottom of a downtrend signals a possible trend reversal, as buying interest emerges after reaching a new low [5]. Fundamental Analysis - There is rising optimism among Wall Street analysts regarding LPSN's future earnings, with a 14.4% increase in the consensus EPS estimate over the last 30 days, indicating improved earnings potential [2][8]. - LPSN holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which historically outperform the market [9].