Bank OZK (OZK) Moves 5.4% Higher: Will This Strength Last?
Bank OZK (OZK) shares rallied 5.4% in the last trading session to close at $44.10. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 8.5% gain over the past four weeks.
With macroeconomic data signaling cooling inflation and the “soft landing” of the U.S. economy, market participants now see relatively low chance of a hike in interest rates later this month. Further, they are of opinion that the Federal Reserve will start cutting rates by March 2024. These factors seem to have turned investors bullish on banks, driving the Bank OZK stock higher.
This bank is expected to post quarterly earnings of $1.46 per share in its upcoming report, which represents a year-over-year change of +9%. Revenues are expected to be $392.34 million, up 9% 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 Bank OZK, the consensus EPS estimate for the quarter has been revised 0.8% 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 OZK 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 >>>>
Bank OZK belongs to the Zacks Banks - Northeast industry. Another stock from the same industry, CNB Financial (CCNE), closed the last trading session 2.1% higher at $20.76. Over the past month, CCNE has returned 6.5%.
CNB's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.54. Compared to the company's year-ago EPS, this represents a change of -22.9%. CNB currently boasts a Zacks Rank of #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Bank OZK (OZK) : Free Stock Analysis Report
CNB Financial Corporation (CCNE) : Free Stock Analysis Report
