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Strength Seen in Capital Bancorp (CBNK): Can Its 6.5% Jump Turn into More Strength?
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Capital Bancorp (CBNK - Free Report) shares soared 6.5% in the last trading session to close at $23.89. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9.5% gain over the past four weeks.
The Federal Reserve signaled the end of the current rate hike cycle and kept the interest rates unchanged at a 22-year high of 5.25-5.5% at the end of the two-day FOMC meeting. Further, the central bank indicated three interest rate cuts by 2024 end. These developments turned investor sentiments bullish on bank stocks as high funding costs will somewhat come down next year, thus supporting spread income and margin. Also, going forward, such monetary easing is likely to propel consumer spending. Hence, the Capital Bancorp stock moved higher.
This company is expected to post quarterly earnings of $0.62 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $42.48 million, up 4.2% 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 Capital Bancorp, 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 CBNK going forward to see if this recent jump can turn into more strength down the road.
Capital Bancorp is a member of the Zacks Banks - Northeast industry. One other stock in the same industry, BCB Bancorp (BCBP - Free Report) , finished the last trading session 3.8% higher at $12.22. BCBP has returned 1.8% over the past month.
BCB Bancorp's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.37. Compared to the company's year-ago EPS, this represents a change of -46.4%. BCB Bancorp currently boasts a Zacks Rank of #5 (Strong Sell).
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Strength Seen in Capital Bancorp (CBNK): Can Its 6.5% Jump Turn into More Strength?
Capital Bancorp (CBNK - Free Report) shares soared 6.5% in the last trading session to close at $23.89. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9.5% gain over the past four weeks.
The Federal Reserve signaled the end of the current rate hike cycle and kept the interest rates unchanged at a 22-year high of 5.25-5.5% at the end of the two-day FOMC meeting. Further, the central bank indicated three interest rate cuts by 2024 end. These developments turned investor sentiments bullish on bank stocks as high funding costs will somewhat come down next year, thus supporting spread income and margin. Also, going forward, such monetary easing is likely to propel consumer spending. Hence, the Capital Bancorp stock moved higher.
This company is expected to post quarterly earnings of $0.62 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $42.48 million, up 4.2% 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 Capital Bancorp, 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 CBNK going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Capital Bancorp is a member of the Zacks Banks - Northeast industry. One other stock in the same industry, BCB Bancorp (BCBP - Free Report) , finished the last trading session 3.8% higher at $12.22. BCBP has returned 1.8% over the past month.
BCB Bancorp's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.37. Compared to the company's year-ago EPS, this represents a change of -46.4%. BCB Bancorp currently boasts a Zacks Rank of #5 (Strong Sell).