Legend Biotech (LEGN) May Find a Bottom Soon, Here's Why You Should Buy the Stock Now

Core Viewpoint - Shares of Legend Biotech Corporation (LEGN) have recently declined by 9.8% over the past week, but the formation of a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging to counteract selling pressure [1] Group 1: Technical Analysis - The hammer chart pattern indicates that the stock may have found support, signaling a possible bottom and a reversal in trend [1] - A hammer pattern forms when there is a small candle body with a long lower wick, suggesting that bears may be losing control over the price during a downtrend [2] - This pattern can occur across various timeframes and is utilized by both short-term and long-term investors, although it should be used alongside other bullish indicators for confirmation [2] Group 2: Fundamental Analysis - Recent upward revisions in earnings estimates for LEGN serve as a bullish indicator, with the consensus EPS estimate increasing by 1.9% over the last 30 days, reflecting analysts' agreement on the company's improved earnings potential [3] - LEGN holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [3] - The Zacks Rank is recognized as an effective timing indicator, suggesting that LEGN's prospects are beginning to improve, further supporting the case for a potential turnaround [3]