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Popular (BPOP) shares ended the last trading session 6.5% higher at $86.91. 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 6.6% loss over the past four weeks.
Popular experienced a significant stock price increase following the optimism surrounding President Donald Trump's announcement of a 90-day pause on "reciprocal" import tariffs, which alleviated investor concerns about potential economic downturns due to trade tensions. This optimism boosted investor confidence in the banking sector stocks, like BPOP.
This company that runs Banco Popular and other banks in Puerto Rico and the U.S. Is expected to post quarterly earnings of $2.26 per share in its upcoming report, which represents a year-over-year change of +20.9%. Revenues are expected to be $756.11 million, up 5.8% 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 Popular, the consensus EPS estimate for the quarter has been revised 0.8% 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 BPOP 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 >>>>
Popular is a member of the Zacks Banks - Southeast industry. One other stock in the same industry, Home BancShares (HOMB), finished the last trading session 6.6% higher at $26.69. HOMB has returned -9.5% over the past month.
For Home BancShares , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.54. This represents a change of +10.2% from what the company reported a year ago. Home BancShares currently has a Zacks Rank of #3 (Hold).
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Popular, Inc. (BPOP) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).