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Axos Financial (AX) Soars 6.2%: Is Further Upside Left in the Stock?

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Axos Financial (AX - Free Report) shares rallied 6.2% in the last trading session to close at $83.18. 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 10.6% gain over the past four weeks.

Shares of Axos Financial rallied for the second consecutive trading session yesterday. In a filing, the company stated that its effective tax rate is expected to decrease by roughly 3% starting in fiscal 2026, following the enactment of California’s new state budget. As a result, it will record a one-time, non-cash impairment charge of nearly $4 million in the fourth quarter of fiscal 2025.

Separately, DA Davidson raised its price target on AX to $96.00 from $92.50 while reiterating a buy rating. The upward revision reflects the company’s above-peer growth and profitability metrics, which continue to support a higher valuation. These developments, along with broader market optimism toward financial services stocks, drove investors’ confidence in AX stock and led to a solid rally.

This bank holding company is expected to post quarterly earnings of $1.84 per share in its upcoming report, which represents a year-over-year change of +0.6%. Revenues are expected to be $312.44 million, up 7.4% 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 Axos Financial, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on AX going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Axos Financial belongs to the Zacks Financial - Miscellaneous Services industry. Another stock from the same industry, HA Sustainable Infrastructure Capital (HASI - Free Report) , closed the last trading session 0.7% lower at $27.22. Over the past month, HASI has returned 7.7%.

HA Sustainable Infrastructure Capital's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.64. Compared to the company's year-ago EPS, this represents a change of +1.6%. HA Sustainable Infrastructure Capital currently boasts a Zacks Rank of #3 (Hold).


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