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Bankwell Financial Group, Inc. (BWFG) Soars 5.7%: Is Further Upside Left in the Stock?

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Bankwell Financial Group, Inc. (BWFG - Free Report) shares soared 5.7% in the last trading session to close at $31.70. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 15.2% loss over the past four weeks.

The performance of banks is expected to have improved in the second quarter driven by the higher interest rates and an increase in loan demand. Further, investors are bullish on the sector on expectations of more interest rate hikes this year. This possibly led to the optimistic stance by the investors, which drove Bankwell Financial stock higher.

This company is expected to post quarterly earnings of $1.01 per share in its upcoming report, which represents a year-over-year change of +27.9%. Revenues are expected to be $22 million, up 22.1% 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 Bankwell Financial Group, Inc., 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 BWFG 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 >>>>

Bankwell Financial Group, Inc. belongs to the Zacks Banks - Northeast industry. Another stock from the same industry, Evans Bancorp (EVBN - Free Report) , closed the last trading session 0.3% lower at $32.71. Over the past month, EVBN has returned -14.3%.

For Evans Bancorp, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.84. This represents a change of -27% from what the company reported a year ago. Evans Bancorp currently has a Zacks Rank of #2 (Buy).


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