Civista Bancshares (CIVB) Soars 10.6%: Is Further Upside Left in the Stock?
Civista Bancshares (CIVB) shares soared 10.6% in the last trading session to close at $18.13. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4.1% gain over the past four weeks.
The Federal Reserve signaled end of the current rate cycle and kept the interest rates unchanged at 22-year high of 5.25-5.5% at the end of two-day FOMC meeting. Further, the central bank indicated three interest rate cuts by 2024-end. These developments turned investor sentiments bullish on bank stocks as high funding costs being faced by the industry players will somewhat come down next year, thus supporting net interest income and margin. Thus, the CIVB stock moved higher.
This bank holding company is expected to post quarterly earnings of $0.56 per share in its upcoming report, which represents a year-over-year change of -27.3%. Revenues are expected to be $38.4 million, down 9.9% 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 Civista Bancshares, 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 CIVB 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 >>>>
Civista Bancshares is part of the Zacks Banks - Midwest industry. Park National (PRK), another stock in the same industry, closed the last trading session 5.4% higher at $131.09. PRK has returned 9.1% in the past month.
For Park National , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.92. This represents a change of -1% from what the company reported a year ago. Park National currently has a Zacks Rank of #1 (Strong Buy).
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
Civista Bancshares, Inc. (CIVB) : Free Stock Analysis Report
Park National Corporation (PRK) : Free Stock Analysis Report
