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GMS (GMS) Crossed Above the 50-Day Moving Average: What That Means for Investors
GMS (GMS - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, GMS broke through the 50-day moving average, which suggests a short-term bullish trend.
One of the three major moving averages, the 50-day simple moving average is commonly used by traders and analysts to determine support or resistance levels for different types of securities. However, the 50-day is considered to be more important since it's the first marker of an up or down trend.
Shares of GMS have been moving higher over the past four weeks, up 7.1%. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock, suggesting that GMS could be poised for a continued surge.
The bullish case solidifies once investors consider GMS's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 3 higher, while the consensus estimate has increased too.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on GMS for more gains in the near future.