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Northrim (NRIM) Moves 6.0% Higher: Will This Strength Last?

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Northrim BanCorp (NRIM - Free Report) shares rallied 6% in the last trading session to close at $26.34. 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 6.6% gain over the past four weeks.

Shares of Northrim BanCorp climbed to a 52-week high of $26.55 in yesterday’s session, fueled by optimism around a 25-basis-point interest rate cut and a more dovish Federal Reserve outlook. With rates trending lower, the lending environment is poised to strengthen, improving credit demand and margins over time. Against this backdrop, investors grew broadly bullish on bank stocks, and NRIM benefited from the momentum.

This holding company for Northrim Bank is expected to post quarterly earnings of $0.64 per share in its upcoming report, which represents a year-over-year change of +30.6%. Revenues are expected to be $50.8 million, up 15.8% 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 Northrim, the consensus EPS estimate for the quarter has been revised 6.2% 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 NRIM going forward to see if this recent jump can turn into more strength down the road.

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

Northrim belongs to the Zacks Banks - West industry. Another stock from the same industry, CVB Financial (CVBF - Free Report) , closed the last trading session 3.7% higher at $20.37. Over the past month, CVBF has returned 4.9%.

CVB Financial's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.4. Compared to the company's year-ago EPS, this represents a change of +11.1%. CVB Financial currently boasts a Zacks Rank of #2 (Buy).


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