American Woodmark (AMWD) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, AMWD 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 AMWD have been moving higher over the past four weeks, up 14.9%. Plus, the company is currently a Zacks Rank #3 (Hold) stock, suggesting that AMWD could be poised for a continued surge.
Once investors consider AMWD'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.
Investors should think about putting AMWD on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
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It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
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