Lloyds (LYG) shares rallied 5% in the last trading session to close at $5.42. 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 0.4% loss over the past four weeks.
Shares of Lloyds continued their winning streak for the third consecutive trading session. Yesterday, the European Central Bank raised interest rates for the first time since 2023 in response to higher inflation because of the ongoing conflict in the Middle East. Higher rates tend to benefit banks, boosting investor sentiment toward the sector and lifting LYG stock.
This bank is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $6.98 billion, up 11.5% 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 Lloyds, 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 LYG 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 >>>>
Lloyds belongs to the Zacks Banks - Foreign industry. Another stock from the same industry, HDFC Bank (HDB), closed the last trading session 2.6% higher at $23.81. Over the past month, HDB has returned -2.9%.
For HDFC Bank, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.39. This represents a change of +5.4% from what the company reported a year ago. HDFC Bank currently has a Zacks Rank of #4 (Sell).
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>Lloyds Banking Group PLC (LYG) : Free Stock Analysis Report
HDFC Bank Limited (HDB) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
