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Isabella Bank (ISBA) Soars 9.3%: Is Further Upside Left in the Stock?

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Isabella Bank Corporation (ISBA - Free Report) shares rallied 9.3% in the last trading session to close at $31.85. 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 7.2% gain over the past four weeks.

Solid job market data has pushed interest rate cut expectations to the latter half of the year. Hence, higher interest rates for a longer time are likely to support banks’ net interest income and margin. So, investors turned optimistic toward Isabella Bank Corporation stock, driving it higher.

This company is expected to post quarterly earnings of $0.55 per share in its upcoming report, which represents a year-over-year change of +19.6%. Revenues are expected to be $18.4 million, up 7.2% 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 Isabella 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 ISBA 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 >>>>

Isabella Bank is part of the Zacks Banks - Northeast industry. HarborOne Bancorp (HONE - Free Report) , another stock in the same industry, closed the last trading session 1.7% higher at $11.67. HONE has returned -2.3% in the past month.

HarborOne Bancorp's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.19. Compared to the company's year-ago EPS, this represents a change of +5.6%. HarborOne Bancorp currently boasts a Zacks Rank of #5 (Strong Sell).


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