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There’s never a dull moment in the stock market. If you were getting used to sideways action, the events of the last couple of weeks have shown that you shouldn’t be complacent. We’ve had two spikes in volatility to go along with major market averages coming down to test 50-day and 200-day moving averages. The good news is, this is creating new trends in the market you can take advantage of.

One time-tested strategy is looking for stocks with positive earnings estimate revisions. Let’s face it, no matter how much you follow a stock, you’re not going to have as much information at your disposal as an analyst whose entire day is dedicated to following that stock and stocks within the same industry. As these analysts increase their earnings estimates, it could be a hint that good things are happening.

Today’s Bull of the Day, Diageo (DEO - Free Report) has seen a string of bullish estimate revisions lately. Diageo plc, together with its subsidiaries, produces, markets, and sells alcoholic beverages worldwide. The company offers a collection of brands across spirits, beer, cider, and wine categories. Its brands include Johnnie Walker, Crown Royal, J&B, Buchanan's and Windsor whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray, and Guinness. 

Bullish estimate revisions are the reason it’s currently a Zacks Rank #1 (Strong Buy). Over the last thirty days, an analyst has come out and increased their estimate for the current year and next year. The current year number was revised up to $6.14 from $5.95 while next year’s number has gone from $6.41 to $6.71.

It should come as no surprise that DEO has been on fire this year. After rallying up from $103 to $123 from January to June, Diageo retreated for a few weeks, carving out a downward trend channel. A huge spike up on earnings broke the stock out of the downward channel and on to new heights. The stock gapped up from $120 to $126 and never looked back. Over the last month shares have pushed even higher, hitting new 52-week highs on multiple occasions. Last week the stock settled down at $134.54.

There are still bullish technical aspects in place as the 50-day moving average has a positive slope and sits around $7 below the current price near $125. The commodity channel index has come down from overbought territory over 100 to 44.07.

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