Strength Seen in Orange County Bancorp, Inc. (OBT): Can Its 6.9% Jump Turn into More Strength?
Orange County Bancorp, Inc. (OBT) shares rallied 6.9% in the last trading session to close at $54. 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 5.8% gain over the past four weeks.
The Federal Reserve signaled end of the current rate cycle and kept the interest rates unchanged at 22-year high of 5.25-5.5% at the end of two-day FOMC meeting. The central bank also indicated 75 basis points cut in rates by 2024-end. These developments turned investor sentiments optimistic as high funding costs being faced by banks will likely come down somewhat next year, thus support net interest income and margin. So, the OBT stock moved higher.
This company is expected to post quarterly earnings of $1.41 per share in its upcoming report, which represents a year-over-year change of -12.4%. Revenues are expected to be $24.6 million, down 5.1% 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 Orange County Bancorp, Inc., 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 OBT 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 >>>>
Orange County Bancorp, Inc. is part of the Zacks Banks - Northeast industry. CB Financial Services (CBFV), another stock in the same industry, closed the last trading session 1.2% higher at $23.27. CBFV has returned 7.8% in the past month.
CB Financial Services' consensus EPS estimate for the upcoming report has changed +255.7% over the past month to $2.21. Compared to the company's year-ago EPS, this represents a change of +176.3%. CB Financial Services currently boasts a Zacks Rank of #5 (Strong Sell).
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Orange County Bancorp, Inc. (OBT) : Free Stock Analysis Report
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