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FVCBankcorp (FVCB) Moves 7.4% Higher: Will This Strength Last?

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FVCBankcorp (FVCB - Free Report) shares rallied 7.4% in the last trading session to close at $21.35. 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 4.9% loss over the past four weeks.

FVCBankcorp witnessed a rise in share price for the second consecutive day. The performance of banks is expected improve in the quarters ahead on the back of rising interest rates. Last month, the Federal Reserve had hiked interest rates by 25 basis points for the first time since 2018 and signaled six more hikes this year to tame raging inflation. Also, there has been increasing expectation of announcement of a bigger rate hike in the next month’s FOMC meeting. This, thus, led to bullish investor sentiments, which drove FVCBankcorp stock higher.

This company is expected to post quarterly earnings of $0.40 per share in its upcoming report, which represents a year-over-year change of +5.3%. Revenues are expected to be $16.53 million, up 11.5% 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 FVCBankcorp, 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 FVCB 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 >>>>

FVCBankcorp is a member of the Zacks Banks - Southeast industry. One other stock in the same industry, CBTX (CBTX - Free Report) , finished the last trading session 0.7% higher at $29.74. CBTX has returned -6.9% over the past month.

CBTX's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.33. Compared to the company's year-ago EPS, this represents a change of -19.5%. CBTX currently boasts a Zacks Rank of #2 (Buy).


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