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Spirit of Texas (STXB) Soars 5.2%: Is Further Upside Left in the Stock?

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Spirit of Texas shares rallied 5.2% in the last trading session to close at $22.59. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 14.9% gain over the past four weeks.

Increased optimism of investors over progress on vaccine developments and stimulus checks resulted in an accelerated recovery of the banking industry. Also, these factors mainly drove the stock higher.

Price and Consensus

Price Consensus Chart for Spirit of Texas

This company is expected to post quarterly earnings of $0.51 per share in its upcoming report, which represents a year-over-year change of +96.2%. Revenues are expected to be $31.6 million, up 19.2% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Spirit of Texas, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on STXB going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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