From a technical perspective, Shoals Technologies Group (SHLS) is looking like an interesting pick, as it just reached a key level of support. SHLS recently overtook the 200-day moving average, and this suggests a long-term bullish trend.
A useful tool for traders and analysts, the 200-day simple moving average helps determine long-term market trends for stocks, commodities, indexes, and other financial instruments. It moves higher or lower in conjunction with longer-term price performance, and serves as a support or resistance level.
SHLS has rallied 26.7% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests SHLS could be on the verge of another move higher.
The bullish case solidifies once investors consider SHLS'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.
Investors should think about putting SHLS on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
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Shoals Technologies Group, Inc. (SHLS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).