Fifth Third Bancorp (FITB) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, FITB broke through the 200-day moving average, which suggests a long-term bullish trend.
The 200-day simple moving average helps traders and analysts determine overall long-term market trends for stocks, commodities, indexes, and other financial instruments. The indicator moves higher or lower along with longer-term price moves, serving as a support or resistance level.
FITB has rallied 10.8% over the past four weeks, and the company is a Zacks Rank #3 (Hold) at the moment. This combination suggests FITB could be on the verge of another move higher.
The bullish case only gets stronger once investors take into account FITB's positive earnings estimate revisions. There have been 5 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 FITB for more gains in the near future.
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