Dime Community (DCOM) shares soared 5.6% in the last trading session to close at $23.07. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 21.5% gain over the past four weeks.
Shares of Dime Community rallied for the sixth straight trading session. 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 are already 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 DCOM higher.
This bank holding company is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of -47.1%. Revenues are expected to be $82.19 million, down 9.3% 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 Dime Community, the consensus EPS estimate for the quarter has been revised 3.5% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on DCOM 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 >>>>
Dime Community is a member of the Zacks Banks - Southeast industry. One other stock in the same industry, First National Corp. (FXNC), finished the last trading session 0.2% higher at $15.73. FXNC has returned 5% over the past month.
For First National, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.44. This represents a change of -21.4% from what the company reported a year ago. First National currently has a Zacks Rank of #3 (Hold).
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Dime Community (DCOM) Stock Jumps 5.6%: Will It Continue to Soar?
Dime Community (DCOM) shares soared 5.6% in the last trading session to close at $23.07. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 21.5% gain over the past four weeks.
Shares of Dime Community rallied for the sixth straight trading session. 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 are already 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 DCOM higher.
This bank holding company is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of -47.1%. Revenues are expected to be $82.19 million, down 9.3% 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 Dime Community, the consensus EPS estimate for the quarter has been revised 3.5% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on DCOM 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 >>>>
Dime Community is a member of the Zacks Banks - Southeast industry. One other stock in the same industry, First National Corp. (FXNC), finished the last trading session 0.2% higher at $15.73. FXNC has returned 5% over the past month.
For First National, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.44. This represents a change of -21.4% from what the company reported a year ago. First National currently has a Zacks Rank of #3 (Hold).