Fifth Third Bancorp (FITB) Surges 5.1%: Is This an Indication of Further Gains?

·2 min read

Fifth Third Bancorp (FITB) shares rallied 5.1% in the last trading session to close at $26.21. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 32.5% loss over the past four weeks.

After the stock market fallout due to the collapse of two S&P 500 banks, investors regained some confidence in the finance sector, backed by the steps taken by the regulators to avert a full-blown crisis. This, along with gradually cooling inflation and less chance of a bigger rate hike, reinforced investor optimism. These developments drove the FITB stock.

This company is expected to post quarterly earnings of $0.82 per share in its upcoming report, which represents a year-over-year change of +18.8%. Revenues are expected to be $2.23 billion, up 18.9% 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 Fifth Third Bancorp, the consensus EPS estimate for the quarter has been revised marginally 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 FITB 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 >>>>

Fifth Third Bancorp is a member of the Zacks Banks - Major Regional industry. One other stock in the same industry, U.S. Bancorp (USB), finished the last trading session 4.6% higher at $34.45. USB has returned -32.2% over the past month.

For U.S. Bancorp , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.17. This represents a change of +18.2% from what the company reported a year ago. U.S. Bancorp currently has a Zacks Rank of #3 (Hold).

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

Fifth Third Bancorp (FITB) : Free Stock Analysis Report

U.S. Bancorp (USB) : Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research