Enterprise Financial Services (EFSC) shares soared 5.8% in the last trading session to close at $42.58. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.9% gain over the past four weeks.

Shares of Enterprise Financial Services rallied for the fourth straight trading session. With the Federal Reserve keeping an eye on unemployment reports and cooling inflation numbers, market participants are projecting interest rate cuts as early as during the September FOMC meeting. Thus, this is a positive development for banks that are already reeling under the Fed’s aggressive monetary tightening. As the rates come down, so will banks’ funding costs. Hence, the investors turned bullish on banking sector stocks, driving EFSC higher.

This financial holding company is expected to post quarterly earnings of $1.06 per share in its upcoming report, which represents a year-over-year change of -17.8%. Revenues are expected to be $153.41 million, down 1% 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 Enterprise Financial Services, 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 EFSC 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 >>>>

Enterprise Financial Services is a member of the Zacks Banks - Midwest industry. One other stock in the same industry, First Busey (BUSE), finished the last trading session 4.4% higher at $25.37. BUSE has returned 8% over the past month.

First Busey's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.49. Compared to the company's year-ago EPS, this represents a change of -5.8%. First Busey currently boasts a Zacks Rank of #3 (Hold).

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Enterprise Financial Services Corporation (EFSC) : Free Stock Analysis Report

First Busey Corporation (BUSE) : Free Stock Analysis Report