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Group 1 Automotive (GPI) Just Reclaimed the 50-Day Moving Average
Group 1 Automotive (GPI - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, GPI broke through the 50-day moving average, which suggests a short-term bullish trend.
The 50-day simple moving average is a widely used technical indicator that helps determine support or resistance levels for different types of securities. It's one of three major moving averages, but takes precedent because it's the first sign of an up or down trend.
Shares of GPI have been moving higher over the past four weeks, up 10.3%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that GPI could be poised for a continued surge.
The bullish case solidifies once investors consider GPI'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.
Investors should think about putting GPI on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.