First Business Financial Services (FBIZ) Surges 7.5%: Is This an Indication of Further Gains?

First Business Financial Services (FBIZ) shares ended the last trading session 7.5% higher at $25.75. 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 9.8% gain over the past four weeks.

First Business Financial Services extended its rally for the second consequent day and closed at a new 52-week high. Optimism surrounding the expectation of an accelerated recovery of the banking sector largely drove the stock. The bullish sentiments can be attributable to steepening of the yield curve, extensive vaccination drive, additional government spending and favorable economic data.

Price and Consensus

This bank holding company for First Business Bank and First Business Bank-Milwaukee is expected to post quarterly earnings of $0.77 per share in its upcoming report, which represents a year-over-year change of +102.6%. Revenues are expected to be $27.4 million, up 16.8% 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 First Business Financial Services, the consensus EPS estimate for the quarter has been revised 9.7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on FBIZ 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 >>>>

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