After reaching an important support level, K12 (LRN) could be a good stock pick from a technical perspective. LRN 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.
LRN could be on the verge of another rally after moving 9.9% higher over the last four weeks. Plus, the company is currently a Zacks Rank #2 (Buy) stock.
The bullish case solidifies once investors consider LRN'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 LRN for more gains in the near future.
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Stride, Inc. (LRN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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