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XP Inc (XP) Surges 8.1%: Is This an Indication of Further Gains?

XP Inc.(XP) shares soared 8.1% in the last trading session to close at $12.91. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 27.9% loss over the past four weeks.

XP Inc witnessed a rise in share price for the third consecutive day on Nasdaq. The performance of financial firms is expected to keep improving on rising interest rates. The central banks across the globe including the Federal Reserve have been rising the interest rates to control inflation. They intend to continue hiking rates and keep it high till the time inflation comes down reasonably. This, thus, led to bullish investor sentiments, which drove XP stock higher.

This company is expected to post quarterly earnings of $0.71 per share in its upcoming report, which represents a year-over-year change of +153.6%. Revenues are expected to be $663.29 million, up 11.1% from the year-ago quarter.

Earnings and revenue 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 price movements.

For XP Inc.A, 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 XP 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 >>>>

XP Inc.A is part of the Zacks Financial - Miscellaneous Services industry. Globe Life (GL), another stock in the same industry, closed the last trading session 1.4% lower at $118.40. GL has returned -1.4% in the past month.

Globe Life's consensus EPS estimate for the upcoming report has changed +2.6% over the past month to $2.48. Compared to the company's year-ago EPS, this represents a change of +45.9%. Globe Life currently boasts a Zacks Rank of #2 (Buy).

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