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Strength Seen in Sterling Bancorp (SBT): Can Its 16.8% Jump Turn into More Strength?

Sterling Bancorp (SBT) shares rallied 16.8% in the last trading session to close at $5.28. 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 28% loss over the past four weeks.

Sterling Bancorp witnessed a rise in share price for the second consecutive day. On Mar 15, the company entered into Plea Agreement with the DOJ, resolving the investigation related to its Advantage Loan Program. This, thus, removes a long-standing uncertainty around the probe. The development also led to revision of its fourth quarter and full year 2022 results.

This bank holding company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of -80%. Revenues are expected to be $18.1 million, down 20.2% 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.

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For Sterling Bancorp, the consensus EPS estimate for the quarter has been revised 50% 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 SBT 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 >>>>

Sterling Bancorp is a member of the Zacks Banks - Northeast industry. One other stock in the same industry, SB Financial Group, Inc. (SBFG), finished the last trading session 0.2% higher at $13.80. SBFG has returned -18.3% over the past month.

For SB Financial Group, Inc. , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.40. This represents a change of +33.3% from what the company reported a year ago. SB Financial Group, Inc. currently has a Zacks Rank of #2 (Buy).

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