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The Bancorp (TBBK) Stock Jumps 11.3%: Will It Continue to Soar?

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The Bancorp (TBBK - Free Report) shares ended the last trading session 11.3% higher at $24.57. 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 6.1% gain over the past four weeks.

This increased investor optimism can be attributed to the news that The Bancorp will be joining the S&P SmallCap 600 index this Friday. Besides, the stock touched a new 52-week high of $25.14 on the day as addition to the index will lead to greater visibility.

Price and Consensus

Price Consensus Chart for TBBK

This holding company for The Bancorp Bank is expected to post quarterly earnings of $0.43 per share in its upcoming report, which represents a year-over-year change of +22.9%. Revenues are expected to be $79.09 million, up 12% 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 The Bancorp, the consensus EPS estimate for the quarter has been revised 2.3% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on TBBK 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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