Strength Seen in Zions (ZION): Can Its 7.0% Jump Turn into More Strength?

·2 min read

Zions (ZION) shares ended the last trading session 7% higher at $32.29. 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 41.3% loss over the past four weeks.

Shares of Zions rallied for the second consecutive day. A statement from the Treasury Secretary Janet Yellen about readiness of the administration to protect banks by taking additional steps as the industry faces worst crisis since 2008 resulted in positive investor sentiments. This drove the ZION stock higher.

This financial holding company is expected to post quarterly earnings of $1.60 per share in its upcoming report, which represents a year-over-year change of +26%. Revenues are expected to be $860.96 million, up 24.1% 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 Zions, 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 ZION 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 >>>>

Zions is a member of the Zacks Banks - West industry. One other stock in the same industry, First Hawaiian (FHB), finished the last trading session 5.3% higher at $22.35. FHB has returned -21.5% over the past month.

First Hawaiian's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.54. Compared to the company's year-ago EPS, this represents a change of +20%. First Hawaiian currently boasts a Zacks Rank of #3 (Hold).

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