Banco Comercial Portugues (BPCGY) Soars 7.3%: Is Further Upside Left in the Stock?

Banco Comercial Portugues S.A. Unsponsored ADR BPCGY shares rallied 7.3% in the last trading session to close at $10.68. 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 6.5% gain over the past four weeks.

An overall favorable broader market sentiment probably drove the BPCGY stock higher in last day's trading sesiion.

This company is expected to post quarterly earnings of $0.22 per share in its upcoming report, which represents a year-over-year change of -66.7%. Revenues are expected to be $1.13 billion, up 16.4% 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 Banco Comercial Portugues, the consensus EPS estimate for the quarter has been revised 13% 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 BPCGY 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 >>>>

Banco Comercial Portugues is a member of the Zacks Banks - Foreign industry. One other stock in the same industry, Banco Macro BMA, finished the last trading session 4.4% lower at $68.86. BMA has returned -7.1% over the past month.

For Banco Macro, the consensus EPS estimate for the upcoming report has changed -51.9% over the past month to $1.42. This represents a change of +118.5% from what the company reported a year ago. Banco Macro currently has a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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