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Cintas (CTAS) Crossed Above the 20-Day Moving Average: What That Means for Investors
From a technical perspective, Cintas (CTAS - Free Report) is looking like an interesting pick, as it just reached a key level of support. CTAS recently overtook the 20-day moving average, and this suggests 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.
Shares of CTAS have been moving higher over the past four weeks, up 5.9%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that CTAS could be poised for a continued surge.
Once investors consider CTAS's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 9 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.
Investors should think about putting CTAS on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.