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Strength Seen in Banco Macro (BMA): Can Its 5.7% Jump Turn into More Strength?

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Banco Macro (BMA - Free Report) shares rallied 5.7% in the last trading session to close at $19.82. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 39.7% gain over the past four weeks.

Banco Macro stock witnessed a rise in price for the sixth consecutive day. The stock touched a new 52-week high during last day’s trading session. The performance of the banking sector is expected to continue to improve in the quarters ahead on the back of rising interest rates. The central banks across the globe have been raising interest rates since the beginning of 2022 to tame the raging inflation. More such hikes are expected to come in the near term. This has led to the bullish investor sentiments, which drove BMA stock higher.

This financial holding company is expected to post quarterly earnings of $0.97 per share in its upcoming report, which represents a year-over-year change of -39.4%. Revenues are expected to be $455.87 million, down 1.4% 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 Banco Macro, 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 BMA 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 >>>>

Banco Macro is part of the Zacks Banks - Foreign industry. Grupo Supervielle (SUPV - Free Report) , another stock in the same industry, closed the last trading session 5.5% higher at $2.69. SUPV has returned 44.5% in the past month.

For Grupo Supervielle, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.02. This represents a change of +71.4% from what the company reported a year ago. Grupo Supervielle currently has a Zacks Rank of #4 (Sell).

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