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Capital City Bank (CCBG) Moves 5.2% Higher: Will This Strength Last?

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Capital City Bank (CCBG - Free Report) shares ended the last trading session 5.2% higher at $27.76. 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 0% loss over the past four weeks.

Shares of Capital City Bank rallied for the second consecutive day. The performance of banks is expected to have improved in the second quarter given the higher interest rates and rise in demand for loans. Investors are also bullish on the banking sector on expectations of the interest rate hikes this year. This possibly led to the optimistic stance by the investors, which drove Capital City Bank higher.

This bank holding company is expected to post quarterly earnings of $0.51 per share in its upcoming report, which represents a year-over-year change of +15.9%. Revenues are expected to be $51.7 million, down 1.4% 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 Capital City Bank, 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 CCBG going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Capital City Bank is a member of the Zacks Banks - Southeast industry. One other stock in the same industry, First Bancorp (FBNC - Free Report) , finished the last trading session 2.1% higher at $35.26. FBNC has returned -5.7% over the past month.

For First Bancorp, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.94. This represents a change of -8.7% from what the company reported a year ago. First Bancorp currently has a Zacks Rank of #3 (Hold).


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