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Banco Macro (BMA) Moves 4.6% Higher: Will This Strength Last?
Banco Macro (BMA - Free Report) shares ended the last trading session 4.6% higher at $109.29. 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 6.9% gain over the past four weeks.
With inflation in Argentina significantly cooling down, market participants are anticipating a cut in interest rates from the current 32%. As both rates and inflation decrease, banks are expected to benefit from increased demand for loans and lower funding costs. This positive outlook for the banking sector is likely contributing to investor optimism regarding BMA stock, driving its value higher.
This financial holding company is expected to post quarterly earnings of $2.40 per share in its upcoming report, which represents a year-over-year change of -73%. Revenues are expected to be $658.48 million, down 76.7% 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 Banco Macro, 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 BMA 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 >>>>
Banco Macro is part of the Zacks Banks - Foreign industry. Bank of Montreal (BMO - Free Report) , another stock in the same industry, closed the last trading session 1.1% higher at $100.17. BMO has returned 2.2% in the past month.
For Bank of Montreal, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.70. This represents a change of -10.5% from what the company reported a year ago. Bank of Montreal currently has a Zacks Rank of #3 (Hold).