ESS Tech(GWH) ZACKS·2025-05-20 14:56Core Viewpoint - ESS Tech, Inc. (GWH) has experienced a bearish price trend, losing 14.7% 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 possible bottoming out, with selling pressure likely subsiding, which supports a bullish outlook for the stock [2][5]. - A hammer pattern forms when there is a small candle body with a long lower wick, signaling that bears may be losing control over the price during a downtrend [4][5]. - The occurrence of a hammer pattern at the bottom of a downtrend suggests that bulls may have successfully halted further price declines, indicating a potential trend reversal [5]. Fundamental Analysis - There has been a positive trend in earnings estimate revisions for GWH, which is a bullish indicator, as it typically leads to price appreciation in the near term [7]. - Over the last 30 days, the consensus EPS estimate for the current year has increased by 6.8%, indicating that sell-side analysts expect better earnings than previously predicted [8]. - GWH currently holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which historically outperform the market [9].