After reaching an important support level, Hewlett Packard Enterprise (HPE) could be a good stock pick from a technical perspective. HPE surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.
The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show more trend reversal signals than longer-term moving averages.
Similar to other SMAs, if a stock's price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.
HPE has rallied 17.2% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests HPE could be on the verge of another move higher.
The bullish case solidifies once investors consider HPE'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 may want to watch HPE for more gains in the near future given the company's key technical level and positive earnings estimate revisions.
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Hewlett Packard Enterprise Company (HPE): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).