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Group 1 Automotive (GPI) Recently Broke Out Above the 20-Day Moving Average

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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 20-day moving average, which suggests a short-term bullish trend.

The 20-day simple moving average is a well-liked trading tool because it provides a look back at a stock's price over a 20-day period. Additionally, short-term traders find this SMA very beneficial, as it smooths out short-term price trends and shows more trend reversal signals than longer-term moving averages.

Like other SMAs, if a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.

Moving Average Chart for GPI

Shares of GPI have been moving higher over the past four weeks, up 6.1%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that GPI could be poised for a continued surge.

The bullish case only gets stronger once investors take into account GPI's positive earnings estimate revisions. There have been 3 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up 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.


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