Western Alliance WAL shares soared 12.4% in the last trading session to close at $68.54. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 17.2% loss over the past four weeks.
Western Alliance stock rallied, driven by a massive jump in the broad markets. The jump was attributable to President Donald Trump’s announcement of a 90-day tariff pause for the non-retaliating nations. This cheered the investors, driving the WAL stock higher.
This bank holding company is expected to post quarterly earnings of $1.78 per share in its upcoming report, which represents a year-over-year change of +3.5%. Revenues are expected to be $794.4 million, up 7.6% 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 Western Alliance, the consensus EPS estimate for the quarter has been revised 3.1% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on WAL 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 >>>>
Western Alliance belongs to the Zacks Banks - West industry. Another stock from the same industry, Plumas Bancorp PLBC, closed the last trading session 1.4% higher at $42.38. Over the past month, PLBC has returned -3.4%.
For Plumas Bancorp
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Western Alliance Bancorporation (WAL): Free Stock Analysis Report Plumas Bancorp (PLBC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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