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Group 1 Automotive (GPI) Just Reclaimed 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 popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show 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.

Shares of GPI have been moving higher over the past four weeks, up 7.2%. 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 1 higher, while the consensus estimate has increased too.

With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on GPI for more gains in the near future.


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