Arcutis Biotherapeutics, Inc. (ARQT) Could Find a Support Soon, Here's Why You Should Buy the Stock Now

Core Viewpoint - The stock price of Arcutis Biotherapeutics, Inc. (ARQT) has been on a bearish trend, losing 6.5% over the past two weeks, but the formation of a hammer chart pattern suggests a potential trend reversal as buying interest may be increasing [1]. Technical Analysis - The hammer chart pattern indicates a potential bottom formation, suggesting that selling pressure may be subsiding [1][3]. - A hammer pattern typically forms during a downtrend when the stock opens lower, makes a new low, but then closes near or above the opening price, indicating a shift in control from bears to bulls [2][3]. Fundamental Analysis - There has been a significant upward trend in earnings estimate revisions for ARQT, with the consensus EPS estimate increasing by 6% over the last 30 days, indicating strong agreement among analysts about improved earnings potential [4]. - The Zacks Rank for ARQT is 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which historically outperform the market [5].