Workflow
Data Analytics for Healthcare
icon
Search documents
Here's Why Health Catalyst (HCAT) Is a Great 'Buy the Bottom' Stock Now
ZACKS· 2026-01-28 15:56
Core Viewpoint - Health Catalyst (HCAT) has shown a downtrend recently, losing 7.5% over the past two weeks, 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 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 or above the 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 HCAT, which is a bullish indicator suggesting potential price appreciation [7]. - The consensus EPS estimate for the current year has increased by 125% over the last 30 days, indicating strong agreement among analysts about improved earnings potential [8]. - HCAT 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].