Isabella Bank Corporation (ISBA) shares ended the last trading session 5.4% higher at $48.99. 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 15.7% gain over the past four weeks.
Weakening job markets are likely to push the Federal Reserve to lower interest rates one more time, after a 50-basis-point cut this year. While declining rates are likely to weigh on banks’ net interest income and margins, asset repricing and decent loan demand will offer support. So, investors are optimistic toward Isabella Bank Corporation stock, driving it higher.
This company is expected to post quarterly earnings of $0.74 per share in its upcoming report, which represents a year-over-year change of +42.3%. Revenues are expected to be $20.8 million, up 12.3% 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 Isabella Bank, the consensus EPS estimate for the quarter has been revised 8.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on ISBA 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 >>>>
Isabella Bank belongs to the Zacks Banks - Northeast industry. Another stock from the same industry, Independent Bank Corp. (INDB), closed the last trading session 0.2% higher at $74.29. Over the past month, INDB has returned 6.4%.
For Independent Bank Corp., the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.65. This represents a change of +36.4% from what the company reported a year ago. Independent Bank Corp. currently has a Zacks Rank of #3 (Hold).
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Isabella Bank Corporation (ISBA): Free Stock Analysis Report Independent Bank Corp. (INDB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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