If history is any guide, there may be trouble ahead for the actions of Lamar Advertising (NASDAQ: LAMR). A so-called “death cross” has formed on its chart and, unsurprisingly, this could be bearish for the stock.
What there is to know: Many traders use moving average crossover systems to make their decisions.
When a short-term average price rises above a longer-term average price, it can mean that the stock is trending higher. If the short-term average price crosses below the long-term average price, it means the trend is down.
Why it matters: 50 and 200 day simple moving averages are commonly used.
The death cross occurs when the 50 days pass below the 200 days. This could mean that the long-term trend is changing.
This just happened with Lamar Advertising, which is trading around $110.31 at press time.
Remember: Seasoned investors don’t trade death crosses blindly.
Instead, they use it as a signal to start looking for short positions based on other factors, such as price levels and company fundamentals and events.
For seasoned investors, this is just a sign that it may be time to start considering possible short positions.
With that in mind, take a look at Lamar Advertising’s past and future earnings forecasts:
| Trimester | Q4 2021 | Q3 2021 | Q2 2021 | Q1 2021 |
|---|---|---|---|---|
| EPS estimate | 1.18 | 1.15 | 0.86 | |
| Actual EPS | 1.21 | 1.05 | 1.18 | 0.38 |
| Revenue estimate | 473.38M | 458.94M | 427.83M | 362.25M |
| Actual turnover | 494.57M | 476.89M | 445.05M | 370.88M |
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
