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Customers Bancorp (CUBI) Moves 10.8% Higher: Will This Strength Last?

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Customers Bancorp (CUBI - Free Report) shares soared 10.8% in the last trading session to close at $20.04. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 43.2% loss over the past four weeks.

Shares of Customers Bancorp rallied for the second consecutive day after stumbling significantly over the past few trading days. Following the fallout from 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 CUBI stock higher.

This bank holding company is expected to post quarterly earnings of $1.24 per share in its upcoming report, which represents a year-over-year change of -43.4%. Revenues are expected to be $158.1 million, down 15% 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 Customers 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 CUBI 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 >>>>

Customers Bancorp belongs to the Zacks Banks - Southeast industry. Another stock from the same industry, Amerant Bancorp Inc. (AMTB - Free Report) , closed the last trading session 2.3% lower at $23.05. Over the past month, AMTB has returned -18.7%.

For Amerant Bancorp Inc., the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.75. This represents a change of +19.1% from what the company reported a year ago. Amerant Bancorp Inc. currently has a Zacks Rank of #2 (Buy).


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