From a technical perspective, Schnitzer Steel (SCHN) is looking like an interesting pick, as it just reached a key level of support. SCHN 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.
Shares of SCHN have been moving higher over the past four weeks, up 10.4%. Plus, the company is currently a Zacks Rank #3 (Hold) stock, suggesting that SCHN could be poised for a continued surge.
Once investors consider SCHN'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.
Investors should think about putting SCHN on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
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