Lemonade (LMND) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, LMND crossed above the 200-day moving average, suggesting a long-term bullish trend.
A useful tool for traders and analysts, the 200-day simple moving average helps determine long-term market trends for stocks, commodities, indexes, and other financial instruments. It moves higher or lower in conjunction with longer-term price performance, and serves as a support or resistance level.
Shares of LMND have been moving higher over the past four weeks, up 60.7%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that LMND could be poised for a continued surge.
The bullish case only gets stronger once investors take into account LMND's positive earnings estimate revisions. There have been 4 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
Investors may want to watch LMND for more gains in the near future given the company's key technical level and positive earnings estimate revisions.
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