From a technical perspective, Palomar (PLMR) is looking like an interesting pick, as it just reached a key level of support. PLMR recently overtook the 50-day moving average, and this suggests a short-term bullish trend.
One of the three major moving averages, the 50-day simple moving average is commonly used by traders and analysts to determine support or resistance levels for different types of securities. However, the 50-day is considered to be more important since it's the first marker of an up or down trend.
PLMR could be on the verge of another rally after moving 11% higher over the last four weeks. Plus, the company is currently a Zacks Rank #2 (Buy) stock.
Once investors consider PLMR'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 6 higher, and the consensus estimate has increased as well.
Investors should think about putting PLMR on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
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Palomar Holdings, Inc. (PLMR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).