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MainStreet Bancshares (MNSB) Soars 5.4%: Is Further Upside Left in the Stock?

MainStreet Bancshares (MNSB) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might...

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This story originally appeared on Zacks

MainStreet Bancshares (MNSB) shares soared 5.4% in the last trading session to close at $24.25. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2% loss over the past four weeks.

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Bullish investor sentiments surrounding the robust banking sector performance drove MainStreet Bancshares stock. This optimistic stance can be attributed to solid economic growth expectations, gradual increase in demand for loan, rising treasury yields backed by sooner-than-expected interest rate hike and favorable economic data.

This company is expected to post quarterly earnings of $0.54 per share in its upcoming report, which represents a year-over-year change of -14.3%. Revenues are expected to be $14.02 million, down 4.9% 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 MainStreet Bank, 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 MNSB 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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