Upstart Holdings, Inc. (NASDAQ: UPST) Counteract The Bears

Shares of Upstart Holdings, Inc. (UPST) have been struggling lately and have lost 31.2% over the past week. However, a hammer chart pattern was formed in its last trading session, which could mean that the stock found support with bulls being able to counteract the bears. So, it could witness a trend reversal down the road.

The formation of a hammer pattern is considered a technical indication of nearing a bottom with likely subsiding of selling pressure. But this is not the only factor that makes a bullish case for the stock. On the fundamental side, strong agreement among Wall Street analysts in raising earnings estimates for this company enhances its prospects of a trend reversal.

Here's What Increases the Odds of a Turnaround for UPST
An upward trend in earnings estimate revisions that UPST has been witnessing lately can certainly be considered a bullish indicator on the fundamental side. That's because empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

Over the last 30 days, the consensus EPS estimate for the current year has increased 0.7%. What it means is that the sell-side analysts covering UPST are majorly in agreement that the company will report better earnings than they predicted earlier.