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FS Bancorp (FSBW) Soars 7.3%: Is Further Upside Left in the Stock?

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FS Bancorp (FSBW - Free Report) shares soared 7.3% in the last trading session to close at $67.89. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 7.5% gain over the past four weeks.

Investor optimism over the expectation of an accelerated recovery of the banking industry drove the stock higher, which touched its new 52-week high. The increased optimism could be attributed to the steepening of the yield curve, the extensive vaccination drive, additional government spending and favorable economic data.

Price and Consensus

Price Consensus Chart for FS Bancorp

This bank holding company is expected to post quarterly earnings of $1.79 per share in its upcoming report, which represents a year-over-year change of +57%. Revenues are expected to be $29.55 million, up 12.1% 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 FS Bancorp, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on FSBW 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 >>>>

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