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Strength Seen in First Guaranty Bancshares (FGBI): Can Its 6.6% Jump Turn into More Strength?

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First Guaranty Bancshares (FGBI - Free Report) shares rallied 6.6% in the last trading session to close at $13.50. 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 3.3% loss over the past four weeks.

With the Federal Reserve hitting a pause in rate hikes, banking stocks are in spotlight. Investor sentiment is gradually turning positive for the industry. Hence, this optimistic stance drove the FGBI stock higher.

This bank holding company is expected to post quarterly earnings of $0.30 per share in its upcoming report, which represents a year-over-year change of -57.1%. Revenues are expected to be $25.99 million, down 9.9% 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 First Guaranty Bancshares, the consensus EPS estimate for the quarter has been revised 1.1% 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 FGBI 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 Guaranty Bancshares belongs to the Zacks Banks - Southeast industry. Another stock from the same industry, National Bank Holdings (NBHC - Free Report) , closed the last trading session 0.6% higher at $31.89. Over the past month, NBHC has returned 0.3%.

National Bank Holdings' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.91. Compared to the company's year-ago EPS, this represents a change of +31.9%. National Bank Holdings currently boasts a Zacks Rank of #2 (Buy).

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