Idexx Laboratories (IDXX) Just Flashed Golden Cross Signal: Do You Buy?

Idexx Laboratories (IDXX) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, IDXX broke through the 20-day moving average, which suggests a short-term bullish trend.

A well-liked tool among traders, the 20-day simple moving average offers a look back at a stock's price over a 20-day period. This is very beneficial to short-term traders, as it smooths out short-term price trends and gives more trend reversal signals than longer-term moving averages.

The 20-day moving average can show signals that are similar to other SMAs as well. 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.

IDXX could be on the verge of another rally after moving 15.2% higher over the last four weeks. Plus, the company is currently a Zacks Rank #2 (Buy) stock.

Once investors consider IDXX's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 2 raised estimates, for the current fiscal year, 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 IDXX for more gains in the near future.

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This article originally published on Zacks Investment Research (zacks.com).

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