Lakeland Financial (LKFN) Moves 7.7% Higher: Will This Strength Last?

·2 min read

Lakeland Financial LKFN shares soared 7.7% in the last trading session to close at $67.45. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 10.4% loss over the past four weeks.

After stumbling significantly over the past few trading days, the trend for LKFN has reversed. Following the fall-out from the collapse of two S&P 500 banks, investors have regained some confidence in the sector amid the steps taken by regulators to avert a full-blown bank run. Moreover, inflation numbers have come out as expected, which has further reinforced investor optimism. These developments drove the LKFN stock higher in last day’s trading session.

This holding company for Lake City Bank is expected to post quarterly earnings of $1.09 per share in its upcoming report, which represents a year-over-year change of +18.5%. Revenues are expected to be $66.9 million, up 20.4% 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 Lakeland Financial, 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 LKFN 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 >>>>

Lakeland Financial is a member of the Zacks Banks - Midwest industry. One other stock in the same industry, German American Bancorp GABC, finished the last trading session 2.5% higher at $33.97. GABC has returned -16% over the past month.

German American Bancorp's consensus EPS estimate for the upcoming report has changed -5.4% over the past month to $0.82. Compared to the company's year-ago EPS, this represents a change of +6.5%. German American Bancorp currently boasts a Zacks Rank of #3 (Hold).

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