Back to top

Image: Bigstock

Strength Seen in Meridian Corp (MRBK): Can Its 6.6% Jump Turn into More Strength?

Read MoreHide Full Article

Meridian Corp (MRBK - Free Report) shares rallied 6.6% in the last trading session to close at $8.95. 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 15.9% loss over the past four weeks.

With the U.S. economy showing no signs of slowing down and the Federal Reserve still expected to cut rates this year, banking sector is in the spotlight. Hence, investors are showing optimistic stance on the sector and this is likely to have driven MRBK stock higher.

This company is expected to post quarterly earnings of $0.23 per share in its upcoming report, which represents a year-over-year change of -32.4%. Revenues are expected to be $23.68 million, down 2.6% 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 Meridian Bank, 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 MRBK 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 >>>>

Meridian Bank is a member of the Zacks Banks - Northeast industry. One other stock in the same industry, Evans Bancorp (EVBN - Free Report) , finished the last trading session 0.6% lower at $26. EVBN has returned -9.5% over the past month.

Evans Bancorp's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.46. Compared to the company's year-ago EPS, this represents a change of -56.6%. Evans Bancorp currently boasts a Zacks Rank of #3 (Hold).


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Evans Bancorp, Inc. (EVBN) - free report >>

Meridian Bank (MRBK) - free report >>

Published in