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East West Bancorp (EWBC) Soars 10.7%: Is Further Upside Left in the Stock?
East West Bancorp (EWBC - Free Report) shares ended the last trading session 10.7% higher at $57.38. 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 33.6% 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. The company's affirmation of solid balance sheet and capital levels drove the sentiments as well. These developments drove the EWBC stock higher.
This bank holding company is expected to post quarterly earnings of $2.19 per share in its upcoming report, which represents a year-over-year change of +31.9%. Revenues are expected to be $677.26 million, up 36.7% 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 East West Bancorp, 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 EWBC going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
East West Bancorp is part of the Zacks Banks - West industry. CVB Financial (CVBF - Free Report) , another stock in the same industry, closed the last trading session 6.3% higher at $19.23. CVBF has returned -26.1% in the past month.
For CVB Financial
, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.45. This represents a change of +45.2% from what the company reported a year ago. CVB Financial currently has a Zacks Rank of #4 (Sell).