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CF Bankshares Inc. (CFBK) Soars 5%: Is Further Upside Left in the Stock?

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CF Bankshares Inc. (CFBK - Free Report) shares ended the last trading session 5% higher at $21.98. 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 0.3% loss over the past four weeks.

Shares of CF Bankshares witnessed a rise for the second consecutive day. The performance of banks is expected improve in the quarters ahead on rising interest rates and decent improvement in loan demand. This week, the Federal Reserve is expected to hike the interest rates again by 75 basis points (bps), after having already increased the rates by 225 bps so far this year. This, thus, led to bullish investor sentiments, which drove CFBK stock higher.

This company is expected to post quarterly earnings of $0.71 per share in its upcoming report, which represents a year-over-year change of +16.4%. Revenues are expected to be $12.8 million, up 2.5% 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 CF Bankshares Inc., 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 CFBK 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 >>>>

CF Bankshares Inc. is a member of the Zacks Banks - Northeast industry. One other stock in the same industry, Evans Bancorp (EVBN - Free Report) , finished the last trading session 2.5% higher at $38.65. EVBN has returned -0.1% over the past month.

Evans Bancorp's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.09. Compared to the company's year-ago EPS, this represents a change of -14.2%. Evans Bancorp currently boasts a Zacks Rank of #2 (Buy).

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