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Strength Seen in First Hawaiian (FHB): Can Its 7.2% Jump Turn into More Strength?

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First Hawaiian (FHB) shares rallied 7.2% in the last trading session to close at $23.33. 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 14.2% loss over the past four weeks.

The performance of banks is expected to have improved in the second quarter driven by the higher interest rates and rise in demand for commercial loans. Investors are also bullish on the sector on expectations of the interest rate hikes this year. This possibly led to the optimistic stance by the investors, which drove First Hawaiian higher.

This bank holding company is expected to post quarterly earnings of $0.45 per share in its upcoming report, which represents a year-over-year change of -33.8%. Revenues are expected to be $186.09 million, up 2.9% 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 First Hawaiian, 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 FHB 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 >>>>

First Hawaiian is part of the Zacks Banks - West industry. Umpqua Holdings (UMPQ), another stock in the same industry, closed the last trading session 7% higher at $17.31. UMPQ has returned -6.5% in the past month.

For Umpqua , the consensus EPS estimate for the upcoming report has changed -0.6% over the past month to $0.39. This represents a change of -26.4% from what the company reported a year ago. Umpqua currently has a Zacks Rank of #3 (Hold).


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