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Strength Seen in The Bancorp (TBBK): Can Its 16.0% Jump Turn into More Strength?

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The Bancorp (TBBK - Free Report) shares rallied 16% in the last trading session to close at $30.15. 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 27.1% loss over the past four weeks.

After stumbling significantly over the past few trading day, the trend reversed. Following the fall out of the collapse of two S&P 500 banks, the investors regained some confidence in the sector amid the steps taken by the regulators to avert a full-blown bank run. Moreover, inflation numbers came out as expected, which further reinforced investor optimism. These developments drove the TBBK stock higher.

This holding company for The Bancorp Bank is expected to post quarterly earnings of $0.77 per share in its upcoming report, which represents a year-over-year change of +54%. Revenues are expected to be $106.97 million, up 37.2% 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 The Bancorp, the consensus EPS estimate for the quarter has been revised 0.7% 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 TBBK going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

The Bancorp is a member of the Zacks Banks - Northeast industry. One other stock in the same industry, Middlefield Banc Corp. (MBCN - Free Report) , finished the last trading session 1.1% higher at $27.81. MBCN has returned -6.5% over the past month.

Middlefield Banc Corp.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.64. Compared to the company's year-ago EPS, this represents a change of -1.5%. Middlefield Banc Corp. currently boasts a Zacks Rank of #4 (Sell).


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