After reaching an important support level, Lyft (LYFT) could be a good stock pick from a technical perspective. LYFT surpassed resistance at the 50-day moving average, suggesting a short-term bullish trend.
The 50-day simple moving average, which is one of three major moving averages, is widely used by traders and analysts to establish support and resistance levels for a range of securities. Because it's the first sign of an up or down trend, the 50-day is considered to be more important.
LYFT has rallied 7.2% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests LYFT could be on the verge of another move higher.
Once investors consider LYFT'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 6 higher, and the consensus estimate has increased as well.
Investors should think about putting LYFT on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
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Lyft, Inc. (LYFT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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