South State (SSB) Surges 9.2%: Is This an Indication of Further Gains?

South State (SSB) shares ended the last trading session 9.2% higher at $75.54. 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 14% loss over the past four weeks.

After stumbling significantly over the past few trading day, the trend reversed. Following the fall out of the collapse of two S&P 500 banks, the investors regained some confidence in the sector amid the steps taken by the regulators to avert a full-blown bank run. Moreover, inflation numbers came out as expected, which further reinforced investor optimism. These developments drove the SSB stock higher.

This bank holding company is expected to post quarterly earnings of $2.05 per share in its upcoming report, which represents a year-over-year change of +21.3%. Revenues are expected to be $445.6 million, up 28.2% 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 South State, the consensus EPS estimate for the quarter has been revised 1.1% 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 SSB 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 >>>>

South State belongs to the Zacks Banks - Southeast industry. Another stock from the same industry, United Bankshares (UBSI), closed the last trading session 0.7% higher at $36.38. Over the past month, UBSI has returned -13.5%.

United Bankshares' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.76. Compared to the company's year-ago EPS, this represents a change of +26.7%. United Bankshares currently boasts a Zacks Rank of #3 (Hold).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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