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Civista Bancshares (CIVB) Moves 5.6% Higher: Will This Strength Last?

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Civista Bancshares (CIVB - Free Report) shares rallied 5.6% in the last trading session to close at $22.30. 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 0.6% loss over the past four weeks.

The performance of banks is expected to have improved in the second quarter given the higher interest rates and rise in demand for commercial 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 Civista Bancshares stock higher.

This bank holding company is expected to post quarterly earnings of $0.53 per share in its upcoming report, which represents a year-over-year change of -10.2%. Revenues are expected to be $31.8 million, down 3.3% 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 Civista Bancshares, 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 CIVB 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 >>>>

Civista Bancshares belongs to the Zacks Banks - Midwest industry. Another stock from the same industry, First Interstate BancSystem (FIBK - Free Report) , closed the last trading session 2% higher at $37.93. Over the past month, FIBK has returned 1%.

For First Interstate BancSystem, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.74. This represents a change of +7.3% from what the company reported a year ago. First Interstate BancSystem currently has a Zacks Rank of #3 (Hold).

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