Group 1 Automotive (GPI) Crossed Above the 200-Day Moving Average: What That Means for Investors
Group 1 Automotive (GPI) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, GPI crossed above the 200-day moving average, suggesting 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.
GPI could be on the verge of another rally after moving 5.6% higher over the last four weeks. Plus, the company is currently a Zacks Rank #3 (Hold) stock.
Once investors consider GPI's positive earnings estimate revisions, the bullish case only solidifies. No estimate has gone lower in the past two months for the current fiscal year, compared to 1 higher, and the consensus estimate has increased as well.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on GPI for more gains in the near future.
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