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Strength Seen in Piper Sandler Companies (PIPR): Can Its 5.4% Jump Turn into More Strength?

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Piper Sandler Companies (PIPR - Free Report) shares rallied 5.4% in the last trading session to close at $140.64. 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 14% loss over the past four weeks.

Piper Sandler witnessed a rise in share price for the third consecutive day. After stumbling significantly over the past week, the trend reversed. Following the fallout from the collapse of two S&P 500 banks, the investors regained some confidence in the finance 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 PIPR stock higher.

This company is expected to post quarterly earnings of $1.77 per share in its upcoming report, which represents a year-over-year change of -43.3%. Revenues are expected to be $310.87 million, down 11.9% 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 Piper Sandler Companies, 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 PIPR 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 >>>>

Piper Sandler Companies is part of the Zacks Financial - Investment Bank industry. Interactive Brokers Group, Inc. (IBKR - Free Report) , another stock in the same industry, closed the last trading session 2.5% higher at $77.90. IBKR has returned -12.7% in the past month.

Interactive Brokers Group, Inc.'s consensus EPS estimate for the upcoming report has changed +1% over the past month to $1.35. Compared to the company's year-ago EPS, this represents a change of +64.6%. Interactive Brokers Group, Inc. currently boasts a Zacks Rank of #3 (Hold).

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