From a technical perspective, Leidos (LDOS Quick QuoteLDOS - Free Report) is looking like an interesting pick, as it just reached a key level of support. LDOS recently overtook the 20-day moving average, and this suggests a short-term bullish trend.

The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides more trend reversal signals than longer-term moving averages.

The 20-day moving average can show signals that are similar to other SMAs as well. 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 LDOS have been moving higher over the past four weeks, up 10.8%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that LDOS could be poised for a continued surge.

The bullish case solidifies once investors consider LDOS's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 5 higher, while the consensus estimate has increased too.

Investors should think about putting LDOS on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.