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Northrop Grumman (NOC) Recently Broke Out Above the 200-Day Moving Average
Northrop Grumman (NOC - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, NOC broke through the 200-day moving average, which suggests a long-term bullish trend.
A useful tool for traders and analysts, the 200-day simple moving average helps determine long-term market trends for stocks, commodities, indexes, and other financial instruments. It moves higher or lower in conjunction with longer-term price performance, and serves as a support or resistance level.
NOC has rallied 7.1% over the past four weeks, and the company is a Zacks Rank #3 (Hold) at the moment. This combination suggests NOC could be on the verge of another move higher.
Once investors consider NOC'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 1 higher, and the consensus estimate has increased as well.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on NOC for more gains in the near future.