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AutoZone (AZO) Crossed Above the 50-Day Moving Average: What That Means for Investors
After reaching an important support level, AutoZone (AZO - Free Report) could be a good stock pick from a technical perspective. AZO surpassed resistance at the 50-day moving average, suggesting 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 AZO have been moving higher over the past four weeks, up 5.1%. Plus, the company is currently a Zacks Rank #3 (Hold) stock, suggesting that AZO could be poised for a continued surge.
Once investors consider AZO'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 11 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 AZO for more gains in the near future.