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After reaching an important support level, Dick's Sporting Goods (DKS) could be a good stock pick from a technical perspective. DKS surpassed resistance at 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.
Like other SMAs, 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.
DKS has rallied 15.3% over the past four weeks, and the company is a Zacks Rank #1 (Strong Buy) at the moment. This combination suggests DKS could be on the verge of another move higher.
The bullish case solidifies once investors consider DKS's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 11 higher, while the consensus estimate has increased too.
Investors should think about putting DKS on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
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DICKS Sporting Goods, Inc. (DKS) : Free Stock Analysis Report
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