Carter Bankshares (CARE) Soars 5.2%: Is Further Upside Left in the Stock?
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Carter Bankshares, Inc. CARE shares ended the last trading session 5.2% higher at $13.20. 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 1% loss over the past four weeks.
With the Federal Reserve expected to cut interest rates once later this year, banking companies are in the spotlight. Hence, Carter Bankshares is likely to see an increase in demand for loans from its portfolio companies and new entities as they realize higher rates are here to stay for longer. Thus, this drove the CARE stock higher.
This company is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of -12.5%. Revenues are expected to be $34.97 million, up 10.2% 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.
For Carter Bankshares, 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 CARE going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Carter Bankshares belongs to the Zacks Banks - Northeast industry. Another stock from the same industry, Midland States Bancorp MSBI, closed the last trading session 1.9% higher at $21.95. Over the past month, MSBI has returned -5.9%.
Midland States Bancorp's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.72. Compared to the company's year-ago EPS, this represents a change of -17.2%. Midland States Bancorp currently boasts a Zacks Rank of #3 (Hold).
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Carter Bankshares, Inc. (CARE) : Free Stock Analysis Report
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