SB Financial Group, Inc. (SBFG) Soars 5.6%: Is Further Upside Left in the Stock?
In This Article:
SB Financial Group, Inc. (SBFG) shares soared 5.6% in the last trading session to close at $15. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 7.5% gain over the past four weeks.
The Federal Reserve signaled the end of the current rate hike cycle and kept the interest rates unchanged at a 22-year high of 5.25-5.5% at the end of the two-day FOMC meeting. Further, the central bank indicated three interest rate cuts by 2024 end. These developments turned investor sentiments bullish on bank stocks as high funding costs will somewhat come down next year, thus supporting spread income and margin. Also, going forward, such monetary easing is likely to propel consumer spending. Hence, the SB Financial Group stock moved higher.
This company is expected to post quarterly earnings of $0.35 per share in its upcoming report, which represents a year-over-year change of -28.6%. Revenues are expected to be $13.4 million, down 8.3% 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 SB Financial Group, Inc., 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 SBFG 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 >>>>
SB Financial Group, Inc. is a member of the Zacks Banks - Northeast industry. One other stock in the same industry, TrustCo Bank (TRST), finished the last trading session 2% higher at $31.24. TRST has returned 7.9% over the past month.
TrustCo's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.66. Compared to the company's year-ago EPS, this represents a change of -40%. TrustCo currently boasts a Zacks Rank of #4 (Sell).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SB Financial Group, Inc. (SBFG) : Free Stock Analysis Report
TrustCo Bank Corp NY (TRST) : Free Stock Analysis Report