Yahoo Finance Ross Stores (ROST) Crossed Above the 20-Day Moving Average: What That Means for Investors
Ross Stores (ROST) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, ROST crossed above the 20-day moving average, suggesting 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.
Similar to other SMAs, if a stock's price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.
ROST has rallied 6.9% over the past four weeks, and the company is a Zacks Rank #3 (Hold) at the moment. This combination suggests ROST could be on the verge of another move higher.
The bullish case only gets stronger once investors take into account ROST's positive earnings estimate revisions. There have been 10 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on ROST for more gains in the near future.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ross Stores, Inc. (ROST) : Free Stock Analysis Report
