FinWise Bancorp (FINW Quick QuoteFINW – Free Report) appears an attractive pick given a noticeable improvement in the company’s earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.
The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool — the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For FinWise Bancorp, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
Current-Quarter Estimate Revisions
The earnings estimate of $0.30 per share for the current quarter represents a change of -38.78% from the number reported a year ago.
The Zacks Consensus Estimate for FinWise Bancorp has increased 25% over the last 30 days, as one estimate has gone higher compared to no negative revisions.
Current-Year Estimate Revisions
For the full year, the company is expected to earn $1.20 per share, representing a year-over-year change of -35.83%.
There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, one estimate has moved up for FinWise Bancorp versus no negative revisions. This has pushed the consensus estimate 8.6% higher.
Favorable Zacks Rank
The promising estimate revisions have helped FinWise Bancorp earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
While strong estimate revisions for FinWise Bancorp have attracted decent investments and pushed the stock 11.4% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.