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Strength Seen in SVB (SIVB): Can Its 4.0% Jump Turn into More Strength?
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SVB Financial shares ended the last trading session 4% higher at $208.28. 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 8.3% loss over the past four weeks.
The performance of banking stocks has been improving since the last couple of quarters as the Federal Reserve has been raising interest rates to counter inflation. Since mid-March, the Fed has raised interest rates quite a number of times and has indicated more hikes in the near term. Thus, in the rising rate environment, the growth in demand for loans has led to bullish investor sentiments, which drove the SIVB stock higher.
This financial services firm is expected to post quarterly earnings of $5.61 per share in its upcoming report, which represents a year-over-year change of -14.5%. Revenues are expected to be $1.49 billion, down 1.5% 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 SVB, 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 SIVB going forward to see if this recent jump can turn into more strength down the road.
SVB is part of the Zacks Banks - West industry. Washington Federal (WAFD - Free Report) , another stock in the same industry, closed the last trading session 0.5% lower at $33.28. WAFD has returned -12.2% in the past month.
For Washington Federal, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.11. This represents a change of +56.3% from what the company reported a year ago. Washington Federal currently has a Zacks Rank of #1 (Strong Buy).
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Strength Seen in SVB (SIVB): Can Its 4.0% Jump Turn into More Strength?
SVB Financial shares ended the last trading session 4% higher at $208.28. 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 8.3% loss over the past four weeks.
The performance of banking stocks has been improving since the last couple of quarters as the Federal Reserve has been raising interest rates to counter inflation. Since mid-March, the Fed has raised interest rates quite a number of times and has indicated more hikes in the near term. Thus, in the rising rate environment, the growth in demand for loans has led to bullish investor sentiments, which drove the SIVB stock higher.
This financial services firm is expected to post quarterly earnings of $5.61 per share in its upcoming report, which represents a year-over-year change of -14.5%. Revenues are expected to be $1.49 billion, down 1.5% 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 SVB, 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 SIVB 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 >>>>
SVB is part of the Zacks Banks - West industry. Washington Federal (WAFD - Free Report) , another stock in the same industry, closed the last trading session 0.5% lower at $33.28. WAFD has returned -12.2% in the past month.
For Washington Federal, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.11. This represents a change of +56.3% from what the company reported a year ago. Washington Federal currently has a Zacks Rank of #1 (Strong Buy).