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HarborOne Bancorp (HONE) Surges 7.6%: Is This an Indication of Further Gains?

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HarborOne Bancorp (HONE - Free Report) shares soared 7.6% in the last trading session to close at $15. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.4% gain over the past four weeks.

HarborOne Bancorp extended its rally for the fourth consequent day and touched a new 52-week high of $15.06 in the first hour of trading. The company announced a new share repurchase program. Under this, the board of directors authorized repurchase of up to 2.8 million shares or nearly 5% of outstanding shares as of Mar 31, 2021. The program is set to expire on Apr 16, 2022.

Further, optimistic investor sentiments surrounding the expectation of an accelerated recovery of the banking sector also drove the stock. The bullish trend can be attributed to steepening of the yield curve, additional government spending and favorable economic data.
 

Price and Consensus

Price Consensus Chart for HONE

This bank holding company is expected to post quarterly earnings of $0.30 per share in its upcoming report, which represents a year-over-year change of +233.3%. Revenues are expected to be $62.2 million, up 36.5% 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 HarborOne Bancorp, the consensus EPS estimate for the quarter has been revised 2% 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 HONE going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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