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Carter Bankshares (CARE) Surges 5.0%: Is This an Indication of Further Gains?

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Carter Bankshares, Inc. (CARE - Free Report) shares soared 5% in the last trading session to close at $15. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 10.2% loss over the past four weeks.

Carter Bankshares stock surged, driven by a massive jump in the broad markets. The jump was attributable to President Donald Trump’s announcement of a 90-day tariff pause for the non-retaliating nations. This cheered the investors, driving the CARE stock higher.

This company is expected to post quarterly earnings of $0.30 per share in its upcoming report, which represents a year-over-year change of +25%. Revenues are expected to be $34.81 million, up 4% 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 Carter Bankshares, 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 CARE 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 >>>>

Carter Bankshares belongs to the Zacks Banks - Northeast industry. Another stock from the same industry, Middlefield Banc Corp. (MBCN - Free Report) , closed the last trading session 11.5% higher at $26.78. Over the past month, MBCN has returned -6.5%.

For Middlefield Banc, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.48. This represents a change of -5.9% from what the company reported a year ago. Middlefield Banc currently has a Zacks Rank of #3 (Hold).


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