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BancorpSouth (BXS) Moves 5% Higher: Will This Strength Last?

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BancorpSouth (BXS - Free Report) shares ended the last trading session 5% higher at $30.38. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 10.7% loss over the past four weeks.

The upswing in share price came after BancorpSouth delivered a earnings surprise of 14.1% in first-quarter 2021 on higher interest income. Also, the bottom line compares favorably with the 33 cents reported in the year-ago quarter. Moreover, higher deposit balances and decreasing costs aided the company.

Price and Consensus

Price Consensus Chart for BXS

This bank is expected to post quarterly earnings of $0.62 per share in its upcoming report, which represents a year-over-year change of +5.1%. Revenues are expected to be $263.28 million, up 0.6% 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 BancorpSouth, the consensus EPS estimate for the quarter has been revised 2.7% 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 BXS 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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