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Strength Seen in Five Star Bancorp (FSBC): Can Its 5.1% Jump Turn into More Strength?

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Five Star Bancorp (FSBC - Free Report) shares ended the last trading session 5.1% higher at $34.9. 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 0.4% gain over the past four weeks.

Shares of Five Star Bancorp have rallied for four consecutive trading sessions. The stock is benefiting from sector-wide gains after global risk-on sentiment and a continued rebound in banking stocks.

This company is expected to post quarterly earnings of $0.71 per share in its upcoming report, which represents a year-over-year change of +36.5%. Revenues are expected to be $40.15 million, up 26.4% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Five Star Bancorp, 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 FSBC 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 >>>>

Five Star Bancorp is part of the Zacks Banks - West industry. Bank of Hawaii (BOH - Free Report) , another stock in the same industry, closed the last trading session 0.1% lower at $61.74. BOH has returned -5.8% in the past month.

For Bank of Hawaii, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.13. This represents a change of +21.5% from what the company reported a year ago. Bank of Hawaii currently has a Zacks Rank of #3 (Hold).


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