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Mid Penn Bancorp (MPB) Soars 5.4%: Is Further Upside Left in the Stock?

Mid Penn Bancorp (MPB) shares rallied 5.4% in the last trading session to close at $27.14. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 10.1% gain over the past four weeks.

Mid Penn Bancorp extended its rally for the fourth consequent day and closed at a new 52-week high. Increased optimism was mainly driven by the expectation of an accelerated recovery of the banking sector. 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

Price Consensus Chart for Mid Penn Bancorp
Price Consensus Chart for Mid Penn Bancorp

This company is expected to post quarterly earnings of $1.07 per share in its upcoming report, which represents a year-over-year change of +137.8%. Revenues are expected to be $29.94 million, up 45.3% 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 Mid Penn Bancorp, the consensus EPS estimate for the quarter has been revised 5.5% 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 MPB 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 >>>>


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