Investors might want to bet on Private Bancorp of America, Inc. (PBAM Quick QuotePBAM - Free Report) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.

The upward trend in estimate revisions for this company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For Private Bancorp of America, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.

Current-Quarter Estimate Revisions

For the current quarter, the company is expected to earn $1.45 per share, which is a change of -1.36% from the year-ago reported number.

Over the last 30 days, one estimate has moved higher for Private Bancorp of America compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 5.07%.

Current-Year Estimate Revisions

For the full year, the earnings estimate of $5.55 per share represents a change of -5.13% from the year-ago number.

There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, three estimates have moved up for Private Bancorp of America versus no negative revisions. This has pushed the consensus estimate 5.44% higher.

Favorable Zacks Rank

The promising estimate revisions have helped Private Bancorp of America earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

Investors have been betting on Private Bancorp of America because of its solid estimate revisions, as evident from the stock's 13.8% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.