Karooooo Ltd. (KARO) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, KARO broke through the 200-day moving average, which suggests a long-term bullish trend.
The 200-day simple moving average is widely-used by traders and analysts, and helps establish market trends for stocks, commodities, indexes, and other financial instruments over the long term. The indicator moves higher or lower together with longer-term price moves, serving as a support or resistance level.
KARO has rallied 5.2% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests KARO could be on the verge of another move higher.
Once investors consider KARO'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 2 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 KARO for more gains in the near future.
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Karooooo Ltd. (KARO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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