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Group 1 Automotive (GPI) Recently Broke Out Above the 200-Day Moving Average
After reaching an important support level, Group 1 Automotive (GPI - Free Report) could be a good stock pick from a technical perspective. GPI surpassed resistance at the 200-day moving average, suggesting a long-term bullish trend.
The 200-day simple moving average is widely-used by traders and analysts, and helps establish market trends for stocks, commodities, indexes, and other financial instruments over the long term. The indicator moves higher or lower together with longer-term price moves, serving as a support or resistance level.
GPI has rallied 16.4% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests GPI could be on the verge of another move higher.
Once investors consider GPI's positive earnings estimate revisions, the bullish case only solidifies. No estimate has gone lower in the past two months for the current fiscal year, compared to 4 higher, and the consensus estimate has increased as well.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on GPI for more gains in the near future.