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Builders FirstSource (BLDR) Recently Broke Out Above the 200-Day Moving Average
Builders FirstSource (BLDR - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, BLDR crossed above 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.
Shares of BLDR have been moving higher over the past four weeks, up 18.3%. Plus, the company is currently a Zacks Rank #3 (Hold) stock, suggesting that BLDR could be poised for a continued surge.
The bullish case solidifies once investors consider BLDR's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 2 higher, while the consensus estimate has increased too.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on BLDR for more gains in the near future.