Amalgamated Financial AMAL shares ended the last trading session 5% higher at $33.55. 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 3.2% gain over the past four weeks.
The increase in the share price of Amalgamated Financial comes as investors are viewing the U.S. capture of Venezuela’s President Maduro as opening a new opportunity set for banks. Moreover, investors are still anchored to a narrative of continued earnings growth, artificial intelligence (AI) driven capex and potential further Fed rate cuts in 2026.
This bank is expected to post quarterly earnings of $0.95 per share in its upcoming report, which represents a year-over-year change of +5.6%. Revenues are expected to be $86.59 million, up 11.2% 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 Amalgamated 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 AMAL 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 >>>>
Amalgamated Financial is a member of the Zacks Financial - SBIC & Commercial Industry industry. One other stock in the same industry, Ares Capital ARCC, finished the last trading session 1.4% higher at $20.73. ARCC has returned -2.8% over the past month.
Ares Capital's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.5. Compared to the company's year-ago EPS, this represents a change of -9.1%. Ares Capital currently boasts a Zacks Rank of #4 (Sell).
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Amalgamated Financial Corp. (AMAL): Free Stock Analysis Report Ares Capital Corporation (ARCC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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