Dow Today – Arcos Dorados (ARCO) Just Reclaimed the 20-Day Moving Average
Arcos Dorados (ARCO) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, ARCO crossed above the 20-day moving average, suggesting a short-term bullish trend.
The 20-day simple moving average is a well-liked trading tool because it provides a look back at a stock’s price over a 20-day period. Additionally, short-term traders find this SMA very beneficial, as it smooths out short-term price trends and shows more trend reversal signals than longer-term moving averages.
Like other SMAs, 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.
Shares of ARCO have been moving higher over the past four weeks, up 7.1%. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock, suggesting that ARCO could be poised for a continued surge.
Looking at ARCO’s earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 1 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
Investors may want to watch ARCO for more gains in the near future given the company’s key technical level and positive earnings estimate revisions.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.
See these 7 breakthrough stocks now >>
Click to get this free report
Arcos Dorados Holdings Inc. (ARCO): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.