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Strength Seen in ChoiceOne Financial Services, Inc. (COFS): Can Its 6.8% Jump Turn into More Strength?

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ChoiceOne Financial Services, Inc. (COFS - Free Report) shares soared 6.8% in the last trading session to close at $31.07. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 20.8% gain over the past four weeks.

Shares of ChoiceOne Financial touched a 52-week high of $31.09. The Federal Reserve has signaled end of the current rate cycle and kept the interest rates unchanged at 22-year high of 5.25-5.5% at the end of two-day FOMC meeting. The central bank also indicated three interest rate cuts by 2024-end.

These favorable developments turned investor sentiments bullish on bank stocks as high funding costs being faced by the industry players will somewhat come down next year. This will support net interest income and margin growth. Hence, the COFS stock moved higher.

This company is expected to post quarterly earnings of $0.64 per share in its upcoming report, which represents a year-over-year change of -28.1%. Revenues are expected to be $20.1 million, down 4.8% 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 ChoiceOne Financial Services, 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 COFS 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 >>>>

ChoiceOne Financial Services, Inc. belongs to the Zacks Financial - Miscellaneous Services industry. Another stock from the same industry, Moody's (MCO - Free Report) , closed the last trading session 0.7% lower at $389.06. Over the past month, MCO has returned 10.8%.

Moody's' consensus EPS estimate for the upcoming report has changed +0.3% over the past month to $2.33. Compared to the company's year-ago EPS, this represents a change of +45.6%. Moody's currently boasts a Zacks Rank of #3 (Hold).

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