Strength Seen in Bank of Hawaii (BOH): Can Its 5.6% Jump Turn into More Strength?

Bank of Hawaii (BOH) shares rallied 5.6% in the last trading session to close at $74.46. 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 23.4% gain over the past four weeks.

Shares of Bank of Hawaii rallied for the third consecutive day. The Federal Reserve has signaled end of the current rate cycle and kept the interest rates unchanged at 22-year high of 5.25-5.5% at the end of two-day FOMC meeting. The central bank also indicated three interest rate cuts by 2024-end. These developments turned investor sentiments bullish on bank stocks as high funding costs being faced by the industry players will somewhat come down next year. This will support net interest income and margin growth. Hence, the BOH stock moved higher.

This bank holding company is expected to post quarterly earnings of $0.87 per share in its upcoming report, which represents a year-over-year change of -42%. Revenues are expected to be $159.1 million, down 12.5% 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 Bank of Hawaii, the consensus EPS estimate for the quarter has been revised 0.7% 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 BOH 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 >>>>

Bank of Hawaii is a member of the Zacks Banks - West industry. One other stock in the same industry, Preferred Bank (PFBC), finished the last trading session 6.1% higher at $74.88. PFBC has returned 7.6% over the past month.

For Preferred Bank, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $2.54. This represents a change of -6.3% from what the company reported a year ago. Preferred Bank currently has 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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