Strength Seen in First Busey (BUSE): Can Its 5.2% Jump Turn into More Strength?
First Busey (BUSE) shares soared 5.2% in the last trading session to close at $24.71. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 8.2% gain over the past four weeks.
After 11 interest rate hikes, the Fed's decision to pause rate hikes for the third month drove bullish sentiments across markets amid the optimism of easing inflation pressures. With this, the interest rates remain at a 22-year high of 5.25-5.5%. Further, the central bank indicated three interest rate cuts by 2024-end. These developments turned investor sentiment bullish on bank stocks, as high funding costs faced by the industry players are expected to decline in the next year, supporting spread income and margins. Hence, the BUSE stock gained.
This bank holding company is expected to post quarterly earnings of $0.51 per share in its upcoming report, which represents a year-over-year change of -21.5%. Revenues are expected to be $108.26 million, down 10% 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 Busey, the consensus EPS estimate for the quarter has been revised 0.5% 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 BUSE 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 Busey belongs to the Zacks Banks - Midwest industry. Another stock from the same industry, UMB Financial (UMBF), closed the last trading session 7% higher at $80.54. Over the past month, UMBF has returned 4.3%.
For UMB , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.76. This represents a change of -14.6% from what the company reported a year ago. UMB currently has a Zacks Rank of #3 (Hold).
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