ConnectOne (CNOB) Surges 7.7%: Is This an Indication of Further Gains?
ConnectOne Bancorp (CNOB) shares ended the last trading session 7.7% higher at $22.32. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 9.1% 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 ConnectOne Bancorp stock moved higher.
This holding company for ConnectOne Bank is expected to post quarterly earnings of $0.47 per share in its upcoming report, which represents a year-over-year change of -40.5%. Revenues are expected to be $65.5 million, down 19.7% 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 ConnectOne, the consensus EPS estimate for the quarter has been revised 2.1% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on CNOB 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 >>>>
ConnectOne belongs to the Zacks Banks - Northeast industry. Another stock from the same industry, Metropolitan Bank Holding Corp. (MCB), closed the last trading session 9% higher at $49.35. Over the past month, MCB has returned 20.7%.
Metropolitan Bank Holding Corp.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.60. Compared to the company's year-ago EPS, this represents a change of -34.2%. Metropolitan Bank Holding Corp. currently boasts a Zacks Rank of #3 (Hold).
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ConnectOne Bancorp, Inc. (CNOB) : Free Stock Analysis Report
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