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United Bancorporation of Alabama, Inc. (UBAB) Soars 5.3%: Is Further Upside Left in the Stock?

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United Bancorporation of Alabama, Inc. (UBAB - Free Report) shares soared 5.3% in the last trading session to close at $38. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9.7% loss over the past four weeks.

After stumbling significantly over the past week, following the fallout from the bank runs and subsequent 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 crisis. Moreover, inflation numbers came out as expected, which further reinforced investor optimism. These developments drove the UBAB stock higher.

This company is expected to post quarterly earnings of $1.32 per share in its upcoming report, which represents a year-over-year change of +73.7%. Revenues are expected to be $15.73 million, up 37.6% 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 Bancorporation of Alabama, Inc., 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 UBAB 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 >>>>

United Bancorporation of Alabama, Inc. is a member of the Zacks Banks - Southeast industry. One other stock in the same industry, National Bank Holdings (NBHC - Free Report) , finished the last trading session 7.3% higher at $37.29. NBHC has returned -16.2% over the past month.

National Bank Holdings' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.03. Compared to the company's year-ago EPS, this represents a change of +68.9%. National Bank Holdings currently boasts a Zacks Rank of #3 (Hold).

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