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Arrow Financial (AROW) Soars 5.3%: Is Further Upside Left in the Stock?

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Arrow Financial (AROW - Free Report) shares soared 5.3% in the last trading session to close at $32.39. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.4% loss over the past four weeks.

Investors are getting bullish on the banking sector on expectations of interest rate hikes and decent demand for commercial and consumer loans. This possibly led to the optimistic stance by the investors, which drove Arrow Financial stock higher.

This bank holding company is expected to post quarterly earnings of $0.71 per share in its upcoming report, which represents a year-over-year change of -14.5%. Revenues are expected to be $35.25 million, down 4.3% 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 Arrow Financial, 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 AROW 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 >>>>

Arrow Financial is a member of the Zacks Banks - Northeast industry. One other stock in the same industry, S&T Bancorp (STBA - Free Report) , finished the last trading session 3.1% higher at $27.83. STBA has returned -1% over the past month.

For S&T Bancorp, the consensus EPS estimate for the upcoming report has changed +6.9% over the past month to $0.63. This represents a change of -12.5% from what the company reported a year ago. S&T Bancorp currently has a Zacks Rank of #1 (Strong Buy).


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