Strength Seen in Plumas Bancorp (PLBC): Can Its 5.4% Jump Turn into More Strength?
Plumas Bancorp (PLBC) shares ended the last trading session 5.4% higher at $35.74. 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 0.7% loss over the past four weeks.
Shares of Plumas Bancorp rallied for the second straight trading day. With economic data signaling cooling inflation and the “soft landing” of the U.S. economy, market participants now don’t see any interest rate hike later this month. They are also of opinion that the Federal Reserve will start cutting rates by March 2024. These factors seem to have turned investors bullish on banks, driving the PLBC stock higher.
This company is expected to post quarterly earnings of $1.23 per share in its upcoming report, which represents a year-over-year change of -6.8%. Revenues are expected to be $20 million, up 2.4% 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 Plumas Bancorp, 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 PLBC 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 >>>>
Plumas Bancorp is a member of the Zacks Banks - West industry. One other stock in the same industry, Northrim BanCorp (NRIM), finished the last trading session 3.1% higher at $53.26. NRIM has returned 17.8% over the past month.
For Northrim , the consensus EPS estimate for the upcoming report has changed +14.8% over the past month to $1.24. This represents a change of -16.2% from what the company reported a year ago. Northrim currently has a Zacks Rank of #2 (Buy).
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