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Hancock Whitney (HWC) Surges 9%: Is This an Indication of Further Gains?

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Hancock Whitney (HWC - Free Report) shares rallied 9% in the last trading session to close at $44.48. 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 1.1% gain over the past four weeks.

Hancock Whitney extended its rally for the second consequent day. Bullish investor sentiments stem from impressive first quarter 2021 results that were announced on Apr 20, after the market close.

Earnings per share of $1.21 surpassed the Zacks Consensus Estimate of 97 cents. Also, the figure shows significant improvement from the prior-year quarter’s loss of $1.28. Higher revenues, decline in operating expenses and reserve releases supported Hancock Whitney’s Q1 performance despite lower rates and weak loan demand.

Price and Consensus

Price Consensus Chart for HWC

This holding company of Whitney Bank and Hancock Bank is expected to post quarterly earnings of $0.92 per share in its upcoming report, which represents a year-over-year change of +167.7%. Revenues are expected to be $311.78 million, down 0% 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 Hancock Whitney, the consensus EPS estimate for the quarter has been revised 1.1% 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 HWC 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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