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Wintrust (WTFC) Surges 5%: Is This an Indication of Further Gains?

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Wintrust Financial (WTFC - Free Report) shares ended the last trading session 5% higher at $82.49. 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 9.3% loss over the past four weeks.

The performance of banks is expected to continue improving in the second quarter, given the higher interest rates and a rise in demand for loans. Investors are also bullish about the banking sector on expectations of further interest rate hikes this year. This possibly led to the optimistic stance of the investors, which drove the WTFC stock.

This bank holding company is expected to post quarterly earnings of $1.72 per share in its upcoming report, which represents a year-over-year change of +1.2%. Revenues are expected to be $442.47 million, up 8.2% 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 Wintrust, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on WTFC 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 >>>>

Wintrust is a member of the Zacks Banks - Midwest industry. One other stock in the same industry, First Financial Bancorp (FFBC - Free Report) , finished the last trading session 1.7% higher at $19.74. FFBC has returned -8.4% over the past month.

For First Financial, the consensus EPS estimate for the upcoming report has changed -0.7% over the past month to $0.51. This represents a change of -12.1% from what the company reported a year ago. First Financial currently has a Zacks Rank of #3 (Hold).


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