Huntington Bancshares (HBAN) Moves 6.9% Higher: Will This Strength Last?
Huntington Bancshares (HBAN) shares soared 6.9% in the last trading session to close at $13.18. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 12.1% 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 Huntington Bancshares stock moved higher.
This regional bank holding company is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents a year-over-year change of -32.6%. Revenues are expected to be $1.82 billion, down 7.8% 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 Huntington Bancshares, the consensus EPS estimate for the quarter has been revised marginally 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 HBAN 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 >>>>
Huntington Bancshares is part of the Zacks Banks - Midwest industry. First Merchants (FRME), another stock in the same industry, closed the last trading session 2.4% higher at $37.45. FRME has returned 14.7% in the past month.
First Merchants' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.87. Compared to the company's year-ago EPS, this represents a change of -26.9%. First Merchants 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
Huntington Bancshares Incorporated (HBAN) : Free Stock Analysis Report
First Merchants Corporation (FRME) : Free Stock Analysis Report
