Salisbury Bancorp (SAL) Stock Jumps 14.8%: Will It Continue to Soar?

Salisbury Bancorp SAL shares ended the last trading session 14.8% higher at $27.30. 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 1.7% loss over the past four weeks.

Shares of SAL witnessed a rise in price for the second consecutive day. The performance of bank stocks is expected improve further in the quarters ahead on rising interest rates and decent improvement in loan demand. This week, the Federal Reserve is expected to hike interest rates again by 75 basis points (bps), after having already increased rates by 225 bps so far this year. This has led to the bullish investor sentiments, which drove Salisbury Bancorp stock higher.

This bank holding company is expected to post quarterly earnings of $0.77 per share in its upcoming report, which represents a year-over-year change of +28.3%. Revenues are expected to be $14.7 million, up 13% 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 Salisbury Bancorp, 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 SAL 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 >>>>

Salisbury Bancorp is a member of the Zacks Banks - Northeast industry. One other stock in the same industry, SmarFinancial SMBK, finished the last trading session 0.8% higher at $25.21. SMBK has returned -8% over the past month.

For SmarFinancial , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.74. This represents a change of +17.5% from what the company reported a year ago. SmarFinancial currently has a Zacks Rank of #3 (Hold).

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