First Business Financial Services (FBIZ) Soars 5.8%: Is Further Upside Left in the Stock?
First Business Financial Services (FBIZ) shares soared 5.8% in the last trading session to close at $37.15. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.5% loss 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 First Business Financial Services stock moved higher.
This bank holding company for First Business Bank and First Business Bank-Milwaukee is expected to post quarterly earnings of $1.14 per share in its upcoming report, which represents a year-over-year change of -3.4%. Revenues are expected to be $37.6 million, up 9.2% 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 First Business Financial Services, 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 FBIZ 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 >>>>
First Business Financial Services is a member of the Zacks Banks - Midwest industry. One other stock in the same industry, Heartland Financial (HTLF), finished the last trading session 5% higher at $36.93. HTLF has returned 14.5% over the past month.
For Heartland Financial , the consensus EPS estimate for the upcoming report has changed -138.6% over the past month to -$0.41. This represents a change of -129.9% from what the company reported a year ago. Heartland Financial currently has a Zacks Rank of #3 (Hold).
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First Business Financial Services, Inc. (FBIZ) : Free Stock Analysis Report
Heartland Financial USA, Inc. (HTLF) : Free Stock Analysis Report
