Yahoo Finance Strength Seen in Capital City Bank (CCBG): Can Its 7.8% Jump Turn into More Strength?
Capital City Bank CCBG shares ended the last trading session 7.8% higher at $29.53. 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 0% gain over the past four weeks.
Shares of Capital City rallied for the second consecutive trading session. With the Federal Reserve keeping an eye on employment reports and cooling inflation numbers, market participants are projecting interest rate cuts as early as September. Thus, for banks reeling under aggressive monetary tightening, this is a positive development. As the rates come down, so will banks’ funding costs. Moreover, given the soft landing of the U.S. economy, the lending scenario is expected to improve further. These positive developments have turned investors bullish on the banking sector stocks, driving CCBG higher.
This bank holding company is expected to post quarterly earnings of $0.71 per share in its upcoming report, which represents a year-over-year change of -16.5%. Revenues are expected to be $55.15 million, down 12.3% 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 Capital City Bank, 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 CCBG 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 >>>>
Capital City Bank is a member of the Zacks Banks - Southeast industry. One other stock in the same industry, Ameris Bancorp ABCB, finished the last trading session 4.4% higher at $54.38. ABCB has returned 7.1% over the past month.
For Ameris Bancorp , the consensus EPS estimate for the upcoming report has changed -0.9% over the past month to $1.15. This represents a change of +26.4% from what the company reported a year ago. Ameris Bancorp currently has a Zacks Rank of #4 (Sell).
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Capital City Bank Group (CCBG) : Free Stock Analysis Report
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