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Old Second Bancorp (OSBC) Surges 8%: Is This an Indication of Further Gains?

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Old Second Bancorp (OSBC - Free Report) shares soared 8% in the last trading session to close at $14.72. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.5% loss over the past four weeks.

Old Second Bancorp witnessed a rise in share price for the second consecutive day and touched a new 52-week high of $14.95. 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 Old Second Bancorp stock higher.

This financial holding company is expected to post quarterly earnings of $0.24 per share in its upcoming report, which represents a year-over-year change of -17.2%. Revenues are expected to be $53.1 million, up 52.4% 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 Old Second Bancorp, the consensus EPS estimate for the quarter has been revised 2.1% 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 OSBC 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 >>>>

Old Second Bancorp is a member of the Zacks Banks - Midwest industry. One other stock in the same industry, Old National Bancorp (ONB - Free Report) , finished the last trading session 0.3% higher at $17.27. ONB has returned -5.9% over the past month.

For Old National Bancorp, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.34. This represents a change of -34.6% from what the company reported a year ago. Old National Bancorp currently has a Zacks Rank of #3 (Hold).

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