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Strength Seen in Comerica Incorporated (CMA): Can Its 6.2% Jump Turn into More Strength?

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Comerica Incorporated (CMA - Free Report) shares rallied 6.2% in the last trading session to close at $47.61. 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 40.6% loss over the past four weeks.

Yesterday, the Federal Reserve announced that it lent around $300 billion to cash-strapped banks in the past week following the Silicon Valley Bank crisis. This indicates the first instance of the central bank’s assistance to the financial sector to help reduce the contagion risk of further bank runs. The Fed has lent an additional $11.9 billion under the new expansive emergency lending program announced on Sunday. Such funding will help banks meet depositors’ withdrawals. These favorable developments have likely rebounded investors’ confidence in the banking system, which drove Comerica's share price.

This company is expected to post quarterly earnings of $2.37 per share in its upcoming report, which represents a year-over-year change of +73%. Revenues are expected to be $976.78 million, up 39.5% 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 Comerica Incorporated, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on CMA 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 >>>>

Comerica Incorporated belongs to the Zacks Banks - Major Regional industry. Another stock from the same industry, BankUnited, Inc. (BKU - Free Report) , closed the last trading session 0.2% lower at $23.10. Over the past month, BKU has returned -40.2%.

BankUnited, Inc.'s consensus EPS estimate for the upcoming report has changed +0.2% over the past month to $1.01. Compared to the company's year-ago EPS, this represents a change of +27.9%. BankUnited, Inc. currently boasts a Zacks Rank of #3 (Hold).

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