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Strength Seen in Regions Financial (RF): Can Its 9.1% Jump Turn into More Strength?

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Regions Financial (RF - Free Report) shares soared 9.1% in the last trading session to close at $20. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 12.6% loss over the past four weeks.

Regions Financial experienced a significant stock price increase following the optimism surrounding President Donald Trump's announcement of a 90-day pause on "reciprocal" import tariffs, which alleviated investor concerns about potential economic downturns due to trade tensions. This optimism boosted investor confidence in the banking sector stocks, like RF.

This holding company for Regions Bank is expected to post quarterly earnings of $0.51 per share in its upcoming report, which represents a year-over-year change of +15.9%. Revenues are expected to be $1.82 billion, up 4.4% 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 Regions Financial, the consensus EPS estimate for the quarter has been revised 1.5% 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 RF 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 >>>>

Regions Financial belongs to the Zacks Banks - Southeast industry. Another stock from the same industry, Third Coast Bancshares, Inc. (TCBX - Free Report) , closed the last trading session 5.3% higher at $29.23. Over the past month, TCBX has returned -12.8%.

Third Coast Bancshares' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.70. Compared to the company's year-ago EPS, this represents a change of +14.8%. Third Coast Bancshares currently boasts a Zacks Rank of #3 (Hold).


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