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BNP Paribas SA (BNPQY) Soars 5.1%: Is Further Upside Left in the Stock?

Zacks Equity Research
·2-min read

BNP Paribas SA (BNPQY) shares soared 5.1% in the last trading session to close at $21.44. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 18.7% loss over the past four weeks.

While raging inflation, supply-chain constraints and recessionary fears weigh on investor sentiments, higher interest rates and decent loan demand are expected to keep supporting stocks in the banking space in the near-term. This possibly led to the optimistic stance by the investors, which drove BNPQY stock higher.

This company is expected to post quarterly earnings of $0.99 per share in its upcoming report, which represents a year-over-year change of -13.2%. Revenues are expected to be $12.16 billion, down 9.5% 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.

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For BNP Paribas SA, the consensus EPS estimate for the quarter has been revised 4.4% 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 BNPQY 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 >>>>

BNP Paribas SA is a member of the Zacks Banks - Foreign industry. One other stock in the same industry, Banco Macro (BMA), finished the last trading session 1.8% higher at $14.31. BMA has returned -16.8% over the past month.

Banco Macro's consensus EPS estimate for the upcoming report has changed -0.5% over the past month to $0.65. Compared to the company's year-ago EPS, this represents a change of -44%. Banco Macro currently boasts a Zacks Rank of #2 (Buy).


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Zacks Investment Research