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M&T Bank Corporation (MTB) Soars 4.7%: Is Further Upside Left in the Stock?

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M&T Bank Corporation (MTB - Free Report) shares soared 4.7% in the last trading session to close at $145.06. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 10.6% gain over the past four weeks.

The Federal Reserve has signaled end of the current rate cycle and kept the interest rates unchanged at 22-year high of 5.25-5.5% at the end of two-day FOMC meeting. The central bank also indicated three interest rate cuts by 2024-end. These developments turned investor sentiments bullish on bank stocks as high funding costs being faced by the industry players will somewhat come down next year. This will support net interest income and margin growth. Hence, the MTB stock moved higher.

This company is expected to post quarterly earnings of $3.73 per share in its upcoming report, which represents a year-over-year change of -18.4%. Revenues are expected to be $2.28 billion, down 9.2% 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 M&T Bank Corporation, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on MTB 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 >>>>

M&T Bank Corporation is part of the Zacks Banks - Major Regional industry. U.S. Bancorp (USB - Free Report) , another stock in the same industry, closed the last trading session 6.7% higher at $45.33. USB has returned 14.3% in the past month.

U.S. Bancorp's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.99. Compared to the company's year-ago EPS, this represents a change of -17.5%. U.S. Bancorp currently boasts a Zacks Rank of #3 (Hold).


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