Coastal Financial Corporation (CCB) shares rallied 5.3% in the last trading session to close at $50.36. 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 9.9% gain over the past four weeks.
Shares of Coastal Financial hit a 52-week high of $50.66 as encouraging inflation numbers and a rising unemployment rate are giving confidence to the Federal Reserve that prices will eventually come down toward the 2% target. So, market participants are predicting interest rate cuts as early as during the September FOMC meeting.
This is a positive development for banks that have been reeling under the Fed’s aggressive monetary tightening. As the rates come down, so will banks’ funding costs. Also, demand for loans is expected to improve. Hence, the investors turned bullish on banking sector stocks, driving CCB higher.
This company is expected to post quarterly earnings of $0.81 per share in its upcoming report, which represents a year-over-year change of -14.7%. Revenues are expected to be $168.3 million, up 39.2% 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 Coastal Financial, 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 CCB 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 >>>>
Coastal Financial is a member of the Zacks Banks - West industry. One other stock in the same industry, Cathay General (CATY), finished the last trading session 3% higher at $40.56. CATY has returned 11.9% over the past month.
Cathay's consensus EPS estimate for the upcoming report has changed +1.1% over the past month to $0.96. Compared to the company's year-ago EPS, this represents a change of -25%. Cathay currently boasts a Zacks Rank of #3 (Hold).
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Coastal Financial (CCB) Surges 5.3%: Is This an Indication of Further Gains?
Coastal Financial Corporation (CCB) shares rallied 5.3% in the last trading session to close at $50.36. 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 9.9% gain over the past four weeks.
Shares of Coastal Financial hit a 52-week high of $50.66 as encouraging inflation numbers and a rising unemployment rate are giving confidence to the Federal Reserve that prices will eventually come down toward the 2% target. So, market participants are predicting interest rate cuts as early as during the September FOMC meeting.
This is a positive development for banks that have been reeling under the Fed’s aggressive monetary tightening. As the rates come down, so will banks’ funding costs. Also, demand for loans is expected to improve. Hence, the investors turned bullish on banking sector stocks, driving CCB higher.
This company is expected to post quarterly earnings of $0.81 per share in its upcoming report, which represents a year-over-year change of -14.7%. Revenues are expected to be $168.3 million, up 39.2% 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 Coastal Financial, 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 CCB 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 >>>>
Coastal Financial is a member of the Zacks Banks - West industry. One other stock in the same industry, Cathay General (CATY), finished the last trading session 3% higher at $40.56. CATY has returned 11.9% over the past month.
Cathay's consensus EPS estimate for the upcoming report has changed +1.1% over the past month to $0.96. Compared to the company's year-ago EPS, this represents a change of -25%. Cathay currently boasts a Zacks Rank of #3 (Hold).