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Bank Hapoalim (BKHYY) Soars 6.7%: Is Further Upside Left in the Stock?

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Bank Hapoalim (BKHYY - Free Report) shares soared 6.7% in the last trading session to close at $47.48. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.4% loss over the past four weeks.

Investors are 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 Bank Hapoalim stock higher.

This company is expected to post quarterly earnings of $1.35 per share in its upcoming report, which represents a year-over-year change of -16.7%. Revenues are expected to be $1.17 billion, up 8% 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 Bank Hapoalim, 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 BKHYY 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 >>>>

Bank Hapoalim is a member of the Zacks Banks - Foreign industry. One other stock in the same industry, Canadian Imperial Bank (CM - Free Report) , finished the last trading session 1.6% higher at $49.68. CM has returned 0.2% over the past month.

For Canadian Imperial Bank, the consensus EPS estimate for the upcoming report has changed -0.1% over the past month to $1.45. This represents a change of -9.4% from what the company reported a year ago. Canadian Imperial Bank currently has a Zacks Rank of #3 (Hold).

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