Bank OZK (OZK) Surges 7.2%: Is This an Indication of Further Gains?

Bank OZK (OZK) shares ended the last trading session 7.2% higher at $38.24. 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 24.8% loss over the past four weeks.

Shares of Bank OZK rallied for the second consecutive day. A statement from the Treasury Secretary Janet Yellen about readiness of the administration to protect small banks by undertaking additional steps as the industry faces worst crisis since 2008 resulted in positive investor sentiments. This drove the OZK stock higher.

 

This bank is expected to post quarterly earnings of $1.44 per share in its upcoming report, which represents a year-over-year change of +41.2%. Revenues are expected to be $364.31 million, up 29.7% 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 Bank OZK, 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 OZK 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 >>>>

Bank OZK is a member of the Zacks Banks - Northeast industry. One other stock in the same industry, Equity Bancshares (EQBK), finished the last trading session 4.9% higher at $25.93. EQBK has returned -22.1% over the past month.

For Equity Bancshares , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.80. This represents a change of -28.6% from what the company reported a year ago. Equity Bancshares currently has a Zacks Rank of #4 (Sell).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Bank OZK (OZK) : Free Stock Analysis Report

Equity Bancshares, Inc. (EQBK) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research