Guaranty Federal Bancshares, Inc. shares soared 12.9% in the last trading session to close at $22.29. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.4% gain over the past four weeks.

Guaranty Federal Bancshares, Inc. scored a fifth consecutive day of price increase and touched a new 52-week high of $22.92 on the last day’s trading session. Increasing optimism over an accelerated recovery driven by extensive vaccination drive, additional government spending and an expectation of robust economic growth has been driving the stock higher.

Price and Consensus

This company is expected to post quarterly earnings of $0.24 per share in its upcoming report, which represents a year-over-year change of -51%. Revenues are expected to be $10 million, up 1.9% 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 Guaranty Federal Bancshares, Inc., the consensus EPS estimate for the quarter has been revised 58.8% 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 GFED 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 >>>>