MTU Aero Engines (MTUAY) is flashing a bullish signal after forming a hammer candlestick pattern in recent trading, despite being down 10.7% over the past month. Here's what traders should watch:

**The Technical Setup**: A hammer pattern forms when a stock finds support after selling pressure, with a long lower wick and closing price near the open. If it holds, this typically signals potential trend reversal.

**Fundamentals Back the Call**: Wall Street analysts have been raising earnings estimates—the consensus EPS for the current year jumped 0.9% in the last 30 days, suggesting better-than-expected results ahead. The stock currently holds a Zacks Rank #2 (Buy), placing it in the top 20% of 4,000+ tracked stocks. Historically, Rank #1-2 stocks outperform the broader market.

**Bottom Line**: The combination of technical support + improving analyst sentiment makes this a potential bottoming setup. However, like all technical patterns, the hammer should be confirmed with volume and other bullish indicators before going all-in.