Builders FirstSource (BLDR) Just Overtook the 50-Day Moving Average
Builders FirstSource (BLDR) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, BLDR broke through the 50-day moving average, which suggests a short-term bullish trend.
The 50-day simple moving average is one of three major moving averages used by traders and analysts to determine support or resistance levels for a wide range of securities. But the 50-day is considered to be more important because it's the first marker of an up or down trend.
BLDR could be on the verge of another rally after moving 8% higher over the last four weeks. Plus, the company is currently a Zacks Rank #2 (Buy) stock.
Looking at BLDR's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 2 higher compared to none lower for the current fiscal year, 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 BLDR for more gains in the near future.
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