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RBB (RBB) Moves 5.5% Higher: Will This Strength Last?

RBB RBB shares rallied 5.5% in the last trading session to close at $21.40. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 1.4% loss over the past four weeks.

Shares of RBB witnessed a rise for the second consecutive day. The performance of bank stocks is expected to improve further in the quarters ahead on rising interest rates and decent improvement in loan demand. So far this year, the Federal Reserve has already raised interest rates a couple of times. The policy rate has reached 3.0-3.25%, the highest level since 2008. More such rate hikes are expected in the near term. This has probably led to the bullish investor sentiments, which drove RBB stock higher.

This bank holding company is expected to post quarterly earnings of $0.85 per share in its upcoming report, which represents a year-over-year change of +10.4%. Revenues are expected to be $40 million, up 7.8% 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 RBB, the consensus EPS estimate for the quarter has been revised 0.6% 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 RBB 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 >>>>

RBB belongs to the Zacks Banks - West industry. Another stock from the same industry, Community West Bancshares CWBC, closed the last trading session 0.4% higher at $14.06. Over the past month, CWBC has returned 0%.

For Community West Bancshares , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.31. This represents a change of -24.4% from what the company reported a year ago. Community West Bancshares currently has a Zacks Rank of #3 (Hold).

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