Unity Bancorp (UNTY) shares rallied 6.8% in the last trading session to close at $29.70. This move can be attributed to remarkable volume with a higher number of shares traded than in a typical session. This compares to the stock’s 0.9% gain over the past four weeks.
Shares of Unity Bancorp rallied for the second straight day. With the Federal Reserve still signaling a 75 basis point cut in interest rates and robust economic growth this year, banks are likely to benefit. Thus, the investors become bullish on the sector and this raised the UNTY stock.
This bank holding company is expected to post quarterly earnings of $0.91 per share in its next report, which represents a year-over-year change of -5.2%. Revenues are expected to be $25.2 million, down 0.5% from the previous year.
Earnings and earnings growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock prices.
For Unity Bancorp, the consensus EPS estimate for the quarter remained unchanged over the last 30 days. And a stock’s price usually doesn’t keep moving higher without some trend in earnings estimate revisions. So, be sure to keep an eye on UNTY 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 >>>>
Unity Bancorp belongs to the Zacks Banks – Northeast industry. Another stock of the same industry, Fulton Financial (FULT), closed the last trading session 0.6% higher at $15.65. Over the past month, FULT has returned 1.6%.
Fulton Financial’s consensus EPS estimate for the upcoming report was unchanged from last month at $0.38. Compared to the company’s previous year’s EPS, this represents a change of -2.6%. Fulton Financial currently boasts a Zacks Rank of #2 (Buy).
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Unity Bancorp, Inc. (UNTY): Free Analysis Report
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