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Strength Seen in Brookline (BRKL): Can Its 7.1% Jump Turn into More Strength?

Zacks Equity Research
·2 min read

Brookline Bancorp (BRKL) shares soared 7.1% in the last trading session to close at $9.30. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.3% gain over the past four weeks.

Brookline recorded a strong price increase driven by the optimism surrounding the company’s announcement of the second quarter result release on July 24. The company is expected to have registered growth in its loans and deposit base driven by improved lending scenarios and a stabilizing macroeconomic environment. This is expected to have boosted the company’s performance, thus driving investors’ confidence in the stock.

This bank holding company is expected to post quarterly earnings of $0.18 per share in its upcoming report, which represents a year-over-year change of -30.8%. Revenues are expected to be $90.67 million, down 0.9% 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 Brookline, 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 BRKL 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 >>>>

Brookline is a member of the Zacks Financial - Savings and Loan industry. One other stock in the same industry, Banner (BANR), finished the last trading session 4.4% higher at $52.31. BANR has returned 6% over the past month.

For Banner , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.14. This represents a change of -13.6% from what the company reported a year ago. Banner currently has a Zacks Rank of #3 (Hold).

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Brookline Bancorp, Inc. (BRKL) : Free Stock Analysis Report

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Zacks Investment Research