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Builders FirstSource (BLDR) Just Reclaimed the 50-Day Moving Average
After reaching an important support level, Builders FirstSource (BLDR - Free Report) could be a good stock pick from a technical perspective. BLDR surpassed resistance at the 50-day moving average, suggesting 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.
BLDR has rallied 9.4% over the past four weeks, and the company is a Zacks Rank #3 (Hold) at the moment. This combination suggests BLDR could be on the verge of another move higher.
The bullish case only gets stronger once investors take into account BLDR's positive earnings estimate revisions. There have been 5 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on BLDR for more gains in the near future.