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Strength Seen in Community West Bancshares (CWBC): Can Its 6.7% Jump Turn into More Strength?

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Community West Bancshares (CWBC - Free Report) shares rallied 6.7% in the last trading session to close at $14.95. 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 1.7% loss over the past four weeks.

The performance of bank stocks is expected improve further in the quarters ahead on rising interest rates and decent improvement in loan demand. This week, the Federal Reserve is expected to hike interest rates again by 75 basis points (bps), after having already increased rates by 225 bps so far this year. This has led to the bullish investor sentiments, which drove Community West Bancshares stock higher.

This company is expected to post quarterly earnings of $0.31 per share in its upcoming report, which represents a year-over-year change of -24.4%. Revenues are expected to be $12.4 million, up 3.6% 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 Community West Bancshares, 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 CWBC 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 >>>>

Community West Bancshares 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 0.2% lower at $79.37. BOH has returned -5.8% in the past month.

Bank of Hawaii's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.44. Compared to the company's year-ago EPS, this represents a change of -5.3%. Bank of Hawaii currently boasts a Zacks Rank of #2 (Buy).


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