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First Republic Bank (FRC) Stock Jumps 29.5%: Will It Continue to Soar?

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First Republic Bank shares ended the last trading session 29.5% higher at $15.77. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 90.6% loss over the past four weeks.

Increasing investor optimism about the U.S. banking system, backed by Treasury Secretary Janet Yellen’s reassurance that regulatory agencies may make additional rescue arrangements if any smaller banks fail and put financial stability at risk. This mainly drove FRC’s stock.

This San Francisco bank is expected to post quarterly earnings of $1.30 per share in its upcoming report, which represents a year-over-year change of -35%. Revenues are expected to be $1.34 billion, down 3.9% 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 First Republic Bank, the consensus EPS estimate for the quarter has been revised 5.3% 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 FRC 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 >>>>

First Republic Bank is a member of the Zacks Banks - West industry. One other stock in the same industry, Washington Federal (WAFD - Free Report) , finished the last trading session 5.3% higher at $32.14. WAFD has returned -17.3% over the past month.

Washington Federal's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.13. Compared to the company's year-ago EPS, this represents a change of +61.4%. Washington Federal currently boasts a Zacks Rank of #3 (Hold).

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