Strength Seen in Origin Bancorp (OBNK): Can Its 5.8% Jump Turn into More Strength?

Origin Bancorp (OBNK) shares rallied 5.8% in the last trading session to close at $39.45. 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 12.2% gain over the past four weeks.

OBNK extended its rally for the third straight day, driven by optimism over the company’s efforts to enhance clients' banking experience. On Mar 1, Origin Bancorp had announced relocation of its branch in The Woodlands with added facilities of drive-thru banking and a 24-hour ATM. Notably, the stock touched a new 52-week high of $40.15 in last day's trading.

Price and Consensus

This bank holding company is expected to post quarterly earnings of $0.92 per share in its upcoming report, which represents a year-over-year change of +2966.7%. Revenues are expected to be $67.7 million, up 23.2% 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 Origin Bancorp, the consensus EPS estimate for the quarter has been revised 3% 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 OBNK 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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