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Citizens & Northern (CZNC) Moves 5.2% Higher: Will This Strength Last?

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Citizens & Northern (CZNC - Free Report) shares ended the last trading session 5.2% higher at $20.49. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.6% gain over the past four weeks.

On Friday, during his speech at Jackson Hole, Federal Reserve Chair Jerome Powell signaled that a rate cut could come as early as September, citing rising risks in the labor market and easing inflation pressures. This marks a shift from the Fed’s “higher-for-longer” stance to a more flexible approach. The banking sector responded positively as this will help bring down funding/deposit costs and improve the lending scenario. Thus, as investors turned positive toward the sector, CZNC stock edged higher.

This bank is expected to post quarterly earnings of $0.53 per share in its upcoming report, which represents a year-over-year change of +29.3%. Revenues are expected to be $28.5 million, up 3.7% 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 Citizens & Northern, the consensus EPS estimate for the quarter has been revised 8.2% 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 CZNC 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 >>>>

Citizens & Northern belongs to the Zacks Banks - Northeast industry. Another stock from the same industry, Bank OZK (OZK - Free Report) , closed the last trading session 4.6% higher at $52.22. Over the past month, OZK has returned -4.2%.

For Bank OZK, the consensus EPS estimate for the upcoming report has changed +1.1% over the past month to $1.67. This represents a change of +7.7% from what the company reported a year ago. Bank OZK currently has a Zacks Rank of #2 (Buy).


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