Unity Bancorp (UNTY) Soars 6.8%: Is Further Upside Left in the Stock?
Unity Bancorp (UNTY) shares rallied 6.8% in the last trading session to close at $29.70. 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 0.9% gain over the past four weeks.
Shares of Unity Bancorp rallied for the second consecutive day. With the Federal Reserve still signaling 75-basis points cut in interest rates and a robust economic growth this year, banks are likely to benefit. Thus, the investors are turning bullish on sector and this drove the UNTY stock higher.
This bank holding company is expected to post quarterly earnings of $0.91 per share in its upcoming report, which represents a year-over-year change of -5.2%. Revenues are expected to be $25.2 million, down 0.5% 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 Unity 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 UNTY 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 >>>>
Unity Bancorp belongs to the Zacks Banks - Northeast industry. Another stock from the same industry, Fulton Financial (FULT), closed the last trading session 0.6% higher at $15.65. Over the past month, FULT has returned 1.6%.
Fulton Financial's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.38. Compared to the company's year-ago EPS, this represents a change of -2.6%. Fulton Financial currently boasts a Zacks Rank of #2 (Buy).
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Unity Bancorp, Inc. (UNTY) : Free Stock Analysis Report
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