Maximus (MMS) Just Flashed Golden Cross Signal: Do You Buy?
After reaching an important support level, Maximus, Inc. (MMS) could be a good stock pick from a technical perspective. MMS recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.
A golden cross is a technical chart pattern that can signify a potential bullish breakout. It's formed from a crossover involving a security's short-term moving average breaking above a longer-term moving average, with the most common moving averages being the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts.
A successful golden cross event has three stages. It first begins when a stock's price on the decline bottoms out. Then, its shorter moving average crosses above its longer moving average, triggering a positive trend reversal. The third and final phase occurs when the stock maintains its upward momentum.
A golden cross is the opposite of a death cross, another technical event that indicates bearish price movement may be on the horizon.
Shares of MMS have been moving higher over the past four weeks, up 20.4%. Plus, the company is currently a #1 (Strong Buy) on the Zacks Rank, suggesting that MMS could be poised for a breakout.
The bullish case solidifies once investors consider MMS's positive earnings outlook. For the current quarter, no earnings estimate has been cut compared to 1 revision higher in the past 60 days. The Zacks Consensus Estimate has increased too.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on MMS for more gains in the near future.
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Maximus, Inc. (MMS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Source Zacks-com
