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United Bankshares (UBSI) Surges 5.3%: Is This an Indication of Further Gains?

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United Bankshares (UBSI - Free Report) shares rallied 5.3% in the last trading session to close at $37.18. 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 15.7% loss over the past four weeks.

Shares of United Bankshares rallied for the third consecutive trading day. After stumbling significantly over the past week, following the fallout from the collapse of two S&P 500 banks, the investors regained some confidence in the industry 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 UBSI stock higher.

This holding company for United Bank is expected to post quarterly earnings of $0.76 per share in its upcoming report, which represents a year-over-year change of +26.7%. Revenues are expected to be $275.4 million, up 15.9% 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 United Bankshares, 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 UBSI 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 >>>>

United Bankshares is a member of the Zacks Banks - Southeast industry. One other stock in the same industry, Home Bancorp (HBCP - Free Report) , finished the last trading session 8.1% higher at $34.80. HBCP has returned -18% over the past month.

For Home Bancorp, the consensus EPS estimate for the upcoming report has changed +3.6% over the past month to $1.30. This represents a change of +36.8% from what the company reported a year ago. Home Bancorp currently has a Zacks Rank of #4 (Sell).

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