Regions Financial (RF) Moves 5.4% Higher: Will This Strength Last?
Regions Financial (RF) shares soared 5.4% in the last trading session to close at $18.61. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 26.2% loss over the past four weeks.
Yesterday, the Federal Reserve announced that it lent around $300 billion to cash-strapped banks in the past week following the Silicon Valley Bank crisis. This indicates the first instance of the central bank’s assistance to the financial sector to help reduce the contagion risk of further bank runs. The Fed has lent an additional $11.9 billion under the new expansive emergency lending program announced on Sunday. Such funding will help banks meet depositors’ withdrawals. These favorable developments have likely rebounded investors’ confidence in the banking system, which drove Regions Financial's share price.
This holding company for Regions Bank is expected to post quarterly earnings of $0.68 per share in its upcoming report, which represents a year-over-year change of +23.6%. Revenues are expected to be $1.98 billion, up 23.9% 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 Regions 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 RF 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 >>>>
Regions Financial is a member of the Zacks Banks - Southeast industry. One other stock in the same industry, Third Coast Bancshares, Inc. (TCBX), finished the last trading session 3.6% higher at $16.58. TCBX has returned -15.3% over the past month.
Third Coast Bancshares, Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.43. Compared to the company's year-ago EPS, this represents a change of +186.7%. Third Coast Bancshares, Inc. currently boasts a Zacks Rank of #3 (Hold).
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