The ONE Group Hospitality, Inc. (STKS) Crossed Above the 50-Day Moving Average: What That Means for Investors
The ONE Group Hospitality, Inc. (STKS) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, STKS broke out above the 50-day moving average, suggesting a short-term bullish trend.
The 50-day simple moving average is a widely used technical indicator that helps determine support or resistance levels for different types of securities. It's one of three major moving averages, but takes precedent because it's the first sign of an up or down trend.
Shares of STKS have been moving higher over the past four weeks, up 11.9%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that STKS could be poised for a continued surge.
The bullish case solidifies once investors consider STKS's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 1 higher, while the consensus estimate has increased too.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on STKS for more gains in the near future.
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