Full access to Entrepreneur for $5
Subscribe

NXP Semiconductors (NXPI) Just Overtook the 20-Day Moving Average

Should investors be excited or worried when a stock crosses above the 20-day simple moving average?

By
This story originally appeared on Zacks

From a technical perspective, NXP Semiconductors (NXPI) is looking like an interesting pick, as it just reached a key level of support. NXPI recently overtook the 20-day moving average, and this suggests a short-term bullish trend.

- Zacks

The 20-day simple moving average is a well-liked trading tool because it provides a look back at a stock's price over a 20-day period. Additionally, short-term traders find this SMA very beneficial, as it smooths out short-term price trends and shows more trend reversal signals than longer-term moving averages.

Like other SMAs, if a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.

Moving Average Chart for NXPI

Shares of NXPI have been moving higher over the past four weeks, up 6.3%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that NXPI could be poised for a continued surge.

Once investors consider NXPI's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 12 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.

Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on NXPI for more gains in the near future.



Tech IPOs With Massive Profit Potential

In the past few years, many popular platforms and like Uber and Airbnb finally made their way to the public markets. But the biggest paydays came from lesser-known names.

For example, electric carmaker X Peng shot up +299.4% in just 2 months. Think of it this way…

If you had put $5,000 into XPEV at its IPO in September 2020, you could have cashed out with $19,970 in November.

With record amounts of cash flooding into IPOs and a record-setting stock market, this year’s lineup could be even more lucrative.

See Zacks Hottest Tech IPOs Now >>



Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

 

NXP Semiconductors N.V. (NXPI): Free Stock Analysis Report

 

To read this article on Zacks.com click here.