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FinWise Bancorp (FINW) Stock Jumps 5.5%: Will It Continue to Soar?

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FinWise Bancorp (FINW - Free Report) shares ended the last trading session 5.5% higher at $15.60. 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 12.6% gain over the past four weeks.

Shares of FinWise Bancorp touched a new 52-week high of $15.74 on Monday. The recent 50 basis points interest rate cut by the Federal Reserve led to an optimistic investor sentiment toward bank stocks. As rates go down, demand for loans is expected to improve and funding cost pressure gradually alleviates. These factors signal better prospects in the near term. This drove the FINW stock higher.

This company is expected to post quarterly earnings of $0.20 per share in its upcoming report, which represents a year-over-year change of -46%. Revenues are expected to be $20.54 million, up 4.6% 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 FinWise Bancorp, 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 FINW going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

FinWise Bancorp belongs to the Zacks Banks - Southwest industry. Another stock from the same industry, First Financial Bankshares (FFIN - Free Report) , closed the last trading session 1% higher at $37.01. Over the past month, FFIN has returned 0.2%.

First Financial's consensus EPS estimate for the upcoming report has changed +1.3% over the past month to $0.39. Compared to the company's year-ago EPS, this represents a change of +11.4%. First Financial currently boasts a Zacks Rank of #2 (Buy).


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