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CF Bankshares Inc. (CFBK) Stock Jumps 9.5%: Will It Continue to Soar?

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CF Bankshares Inc. (CFBK - Free Report) shares ended the last trading session 9.5% higher at $22.56. 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 5.1% loss over the past four weeks.

The performance of banks has been decent in the first quarter of 2022 so far, which is expected improve further on the back of rising interest rates. Last week, the Federal Reserve had hiked interest rates by 25 basis points and signaled six more hikes this year. This, thus, led to bullish investor sentiments, which drove CF Bankshares stock higher.

This company is expected to post quarterly earnings of $0.73 per share in its upcoming report, which represents a year-over-year change of -24%. Revenues are expected to be $12.9 million, down 23.4% 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 CF Bankshares Inc., the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on CFBK 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 >>>>

CF Bankshares Inc. is a member of the Zacks Banks - Northeast industry. One other stock in the same industry, HarborOne Bancorp (HONE - Free Report) , finished the last trading session 5.8% lower at $14.21. HONE has returned 3% over the past month.

For HarborOne Bancorp, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.18. This represents a change of -51.4% from what the company reported a year ago. HarborOne Bancorp currently has a Zacks Rank of #4 (Sell).

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