Strength Seen in Wintrust (WTFC): Can Its 5.5% Jump Turn into More Strength?

Wintrust Financial (WTFC) shares rallied 5.5% in the last trading session to close at $74.97. 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 24% 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 WTFC stock higher.

This bank holding company is expected to post quarterly earnings of $2.63 per share in its upcoming report, which represents a year-over-year change of +27.1%. Revenues are expected to be $575.88 million, up 24.6% 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 Wintrust, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on WTFC 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 >>>>

Wintrust is part of the Zacks Banks - Midwest industry. First Western (MYFW), another stock in the same industry, closed the last trading session 0.3% higher at $19.58. MYFW has returned -28.3% in the past month.

For First Western, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.46. This represents a change of -24.6% from what the company reported a year ago. First Western currently has a Zacks Rank of #4 (Sell).

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Wintrust Financial Corporation (WTFC) : Free Stock Analysis Report

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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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