Webster Financial (WBS) shares ended the last trading session 11.6% higher at $46.66. 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 14.2% loss over the past four weeks.
Webster Financial witnessed a strong price increase following President Donald Trump's unanticipated announcement on April 9, 2025, of a 90-day suspension of reciprocal tariffs for most trading partners, excluding China. The tariff pause eased immediate worries about escalating trade wars, fostering a more favorable economic outlook. The expectation of improved economic conditions bolstered investors’ confidence in the banking stocks like WBS.
This holding company for Webster Bank is expected to post quarterly earnings of $1.38 per share in its upcoming report, which represents a year-over-year change of +2.2%. Revenues are expected to be $714.9 million, up 7.2% 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 Webster Financial, the consensus EPS estimate for the quarter has been revised 1.8% 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 WBS 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 >>>>
Webster Financial belongs to the Zacks Banks - Northeast industry. Another stock from the same industry, Citizens Financial Services (CZFS), closed the last trading session 6.5% higher at $57.41. Over the past month, CZFS has returned -4.3%.
Citizens Financial Services' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.49. Compared to the company's year-ago EPS, this represents no change. Citizens Financial Services currently boasts a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).
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