Comerica Incorporated (CMA) Soars 7.1%: Is Further Upside Left in the Stock?
Comerica Incorporated (CMA) shares soared 7.1% in the last trading session to close at $56.81. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 17.8% gain over the past four weeks.
The Federal Reserve signaled the end of the current rate hike cycle and kept the interest rates unchanged at a 22-year high of 5.25-5.5% at the end of the 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 will somewhat come down next year, thus supporting spread income and margin. Also, going forward, such monetary easing is likely to propel consumer spending. Hence, the Comerica Incorporated stock moved higher.
This company is expected to post quarterly earnings of $1.36 per share in its upcoming report, which represents a year-over-year change of -47.3%. Revenues are expected to be $852.74 million, down 16.4% 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 Comerica Incorporated, 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 CMA 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 >>>>
Comerica Incorporated is part of the Zacks Banks - Major Regional industry. The PNC Financial Services Group, Inc (PNC), another stock in the same industry, closed the last trading session 4.8% higher at $153.31. PNC has returned 13.5% in the past month.
For The PNC Financial Services Group, Inc , the consensus EPS estimate for the upcoming report has changed +0.5% over the past month to $3.01. This represents a change of -13.8% from what the company reported a year ago. The PNC Financial Services Group, Inc currently has a Zacks Rank of #3 (Hold).
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Comerica Incorporated (CMA) : Free Stock Analysis Report
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