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Royal Bank (RY) Soars 5.0%: Is Further Upside Left in the Stock?

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Royal Bank (RY - Free Report) shares soared 5% in the last trading session to close at $113.73. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.8% loss over the past four weeks.

Royal Bank shares rallied on the NYSE as markets responded positively to President Trump’s announcement of a 90-day tariff suspension for non-retaliating countries. The move alleviated trade tensions, boosting investor sentiment and driving a notable surge in RY stock.

This bank is expected to post quarterly earnings of $2.21 per share in its upcoming report, which represents a year-over-year change of +2.8%. Revenues are expected to be $10.91 billion, up 4.7% 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 Royal Bank, the consensus EPS estimate for the quarter has been revised marginally 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 RY 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 >>>>

Royal Bank is part of the Zacks Banks - Foreign industry. HDFC Bank (HDB - Free Report) , another stock in the same industry, closed the last trading session 2.9% higher at $65.66. HDB has returned 6.7% in the past month.

HDFC Bank's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.72. Compared to the company's year-ago EPS, this represents a change of -14.3%. HDFC Bank currently boasts a Zacks Rank of #4 (Sell).


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