Strength Seen in FVCBankcorp (FVCB): Can Its 12% Jump Turn into More Strength?

FVCBankcorp (FVCB) shares ended the last trading session 12% higher at $17.81. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 5.4% loss over the past four weeks.

FVCBankcorp extended its rally for the third consequent day, driven by optimism surrounding the expectation of an accelerated recovery of the banking industry. The optimistic sentiments can be attributable to steepening of the yield curve, extensive vaccination drive, additional government spending and favorable economic data.

Price and Consensus

Price Consensus Chart for FVCBankcorp

This company is expected to post quarterly earnings of $0.33 per share in its upcoming report, which represents a year-over-year change of +32%. Revenues are expected to be $15.26 million, up 18.3% 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 FVCBankcorp, 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 FVCB going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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