After reaching an important support level, First Hawaiian, Inc. (FHB) could be a good stock pick from a technical perspective. FHB recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.
Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts.
Golden crosses have three key stages that investors look out for. It starts with a downtrend in a stock's price that eventually bottoms out, followed by the stock's shorter moving average crossing over its longer moving average and triggering a trend reversal. The final stage is when a stock continues the upward climb to higher prices.
This kind of chart pattern is the opposite of a death cross, which is a technical event that suggests future bearish price movement.
Shares of FHB have been moving higher over the past four weeks, up 9.7%. Plus, the company is currently a #3 (Hold) on the Zacks Rank, suggesting that FHB could be poised for a breakout.
Once investors consider FHB's positive earnings outlook for the current quarter, the bullish case only solidifies. No earnings estimate has gone lower in the past two months compared to 4 revisions higher, and the Zacks Consensus Estimate has increased as well.
Investors may want to watch FHB for more gains in the near future given the company's key technical level and positive earnings estimate revisions.
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First Hawaiian, Inc. (FHB): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).