RBB Bancorp (RBB) shares ended the last trading session 5.1% higher at $20.68. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 15.3% gain over the past four weeks.
Shares of RBB Bancorp hit a 52-week high of $20.75 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 RBB higher.
This bank holding company is expected to post quarterly earnings of $0.34 per share in its upcoming report, which represents a year-over-year change of -41.4%. Revenues are expected to be $27.5 million, down 20.1% 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 RBB, 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 RBB 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 >>>>
RBB is a member of the Zacks Banks - West industry. One other stock in the same industry, East West Bancorp (EWBC), finished the last trading session 1.5% higher at $77.42. EWBC has returned 9.9% over the past month.
For East West Bancorp, the consensus EPS estimate for the upcoming report has changed +0.2% over the past month to $1.97. This represents a change of -10.5% from what the company reported a year ago. East West Bancorp currently has a Zacks Rank of #3 (Hold).
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RBB (RBB) Moves 5.1% Higher: Will This Strength Last?
RBB Bancorp (RBB) shares ended the last trading session 5.1% higher at $20.68. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 15.3% gain over the past four weeks.
Shares of RBB Bancorp hit a 52-week high of $20.75 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 RBB higher.
This bank holding company is expected to post quarterly earnings of $0.34 per share in its upcoming report, which represents a year-over-year change of -41.4%. Revenues are expected to be $27.5 million, down 20.1% 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 RBB, 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 RBB 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 >>>>
RBB is a member of the Zacks Banks - West industry. One other stock in the same industry, East West Bancorp (EWBC), finished the last trading session 1.5% higher at $77.42. EWBC has returned 9.9% over the past month.
For East West Bancorp, the consensus EPS estimate for the upcoming report has changed +0.2% over the past month to $1.97. This represents a change of -10.5% from what the company reported a year ago. East West Bancorp currently has a Zacks Rank of #3 (Hold).