If history is any guide, there may be good fortune ahead for shares of Lear (NYSE:LEA). A so-called "golden cross" has formed on its chart and, not surprisingly, this could be bullish for the stock.
What To Know: Many traders use moving average crossover systems to make their decisions.
When a shorter-term average price crosses above a longer-term average price, it could mean the stock is trending higher. If the short-term average price crosses below the long-term average price, it means the trend is lower.
Why It's Important: The 50-day and the 200-day simple moving averages are commonly used.
The golden cross occurs when the 50-day crosses above the 200-day. This could mean the long-term trend is changing.
That just happened with Lear, which is trading around $187.31 at publication time.
Remember: Seasoned investors don't blindly trade Golden Crosses.
Instead, they use it as a signal to start looking for long positions based on other factors, like price levels and company fundamentals & events.
For seasoned investors, this is just a sign that it might be time to start considering possible long positions.
With that in mind, take a look at Lear's past and upcoming earnings expectations:
| Quarter | Q3 2021 | Q2 2021 | Q1 2021 | Q4 2020 |
|---|---|---|---|---|
| EPS Estimate | 0.71 | 2.68 | 2.95 | 3.47 |
| EPS Actual | 0.53 | 2.45 | 3.73 | 3.66 |
| Revenue Estimate | 4.37B | 4.91B | 4.89B | 5.01B |
| Revenue Actual | 4.27B | 4.76B | 5.36B | 5.24B |
Also consider this overview of Lear analyst ratings:
Do you use the Golden Cross signal in your trading or investing? Share this article with a friend if you found it helpful!
This article was generated by Benzinga's automated content engine and reviewed by an editor.
