Synovus (SNV) Soars 10.0%: Is Further Upside Left in the Stock?

·2 min read

Synovus Financial (SNV) shares ended the last trading session 10% higher at $31.17. 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 34.4% loss over the past four weeks.

Increasing investor optimism about the U.S. banking system, backed by Treasury Secretary Janet Yellen’s reassurance that regulatory agencies may make additional rescue arrangements if any smaller banks fail and put financial stability at risk. This mainly drove Synovus Bank’s stock.

This holding company for Synovus Bank is expected to post quarterly earnings of $1.28 per share in its upcoming report, which represents a year-over-year change of +18.5%. Revenues are expected to be $601.66 million, up 20.9% 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 Synovus, 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 SNV 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 >>>>

Synovus belongs to the Zacks Banks - Southeast industry. Another stock from the same industry, First Bancorp (FBP), closed the last trading session 4.4% higher at $11.93. Over the past month, FBP has returned -21.2%.

First Bancorp's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.36. Compared to the company's year-ago EPS, this represents a change of -12.2%. First Bancorp currently boasts a Zacks Rank of #4 (Sell).

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