FinWise Bancorp (FINW Quick QuoteFINW - Free Report) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.

The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For FinWise Bancorp, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.

Current-Quarter Estimate Revisions

For the current quarter, the company is expected to earn $0.25 per share, which is a change of 0% from the year-ago reported number.

Over the last 30 days, the Zacks Consensus Estimate for FinWise Bancorp has increased 36.11% because two estimates have moved higher compared to no negative revisions.

Current-Year Estimate Revisions

For the full year, the company is expected to earn $1.03 per share, representing a year-over-year change of +10.75%.

There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, two estimates have moved up for FinWise Bancorp versus no negative revisions. This has pushed the consensus estimate 13.6% higher.

Favorable Zacks Rank

Thanks to promising estimate revisions, FinWise Bancorp currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

While strong estimate revisions for FinWise Bancorp have attracted decent investments and pushed the stock 10.4% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.