Summit Financial (SMMF) Moves 5.1% Higher: Will This Strength Last?
Summit Financial (SMMF) shares ended the last trading session 5.1% higher at $26.91. 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 20.2% gain over the past four weeks.
Investor optimism over the expectation of an accelerated recovery of the banking industry drove the stock higher. The increased optimism could be attributed to the steepening of the yield curve, the extensive vaccination drive, additional government spending and favorable economic data.
Price and Consensus
This financial holding company is expected to post quarterly earnings of $0.83 per share in its upcoming report, which represents a year-over-year change of +137.1%. Revenues are expected to be $30.8 million, up 18.7% 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 Summit Financial, 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 SMMF going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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Summit Financial Group, Inc. (SMMF) : Free Stock Analysis Report
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