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Strength Seen in SVB (SIVB): Can Its 3.6% Jump Turn into More Strength?
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SVB Financial shares soared 3.6% in the last trading session to close at $415.52. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 15.2% loss over the past four weeks.
The performance of banks is expected to have improved in the second quarter given the higher interest rates and rise in demand for loans. Investors are also bullish on the banking sector on expectations of the interest rate hikes this year. This possibly led to the optimistic stance by the investors, which drove SVB Financial higher.
This financial services firm is expected to post quarterly earnings of $7.86 per share in its upcoming report, which represents a year-over-year change of -13.5%. Revenues are expected to be $1.66 billion, up 11.1% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For SVB, the consensus EPS estimate for the quarter has been revised 0.6% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on SIVB going forward to see if this recent jump can turn into more strength down the road.
SVB is part of the Zacks Banks - West industry. Central Pacific Financial (CPF - Free Report) , another stock in the same industry, closed the last trading session 2.7% higher at $21.95. CPF has returned -10.9% in the past month.
Central Pacific Financial's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.55. Compared to the company's year-ago EPS, this represents a change of -16.7%. Central Pacific Financial currently boasts a Zacks Rank of #3 (Hold).
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Strength Seen in SVB (SIVB): Can Its 3.6% Jump Turn into More Strength?
SVB Financial shares soared 3.6% in the last trading session to close at $415.52. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 15.2% loss over the past four weeks.
The performance of banks is expected to have improved in the second quarter given the higher interest rates and rise in demand for loans. Investors are also bullish on the banking sector on expectations of the interest rate hikes this year. This possibly led to the optimistic stance by the investors, which drove SVB Financial higher.
This financial services firm is expected to post quarterly earnings of $7.86 per share in its upcoming report, which represents a year-over-year change of -13.5%. Revenues are expected to be $1.66 billion, up 11.1% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For SVB, the consensus EPS estimate for the quarter has been revised 0.6% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on SIVB going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
SVB is part of the Zacks Banks - West industry. Central Pacific Financial (CPF - Free Report) , another stock in the same industry, closed the last trading session 2.7% higher at $21.95. CPF has returned -10.9% in the past month.
Central Pacific Financial's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.55. Compared to the company's year-ago EPS, this represents a change of -16.7%. Central Pacific Financial currently boasts a Zacks Rank of #3 (Hold).