Regional Banks Surge: Earnings Propel Rebound From Key Support Level At 200-Day Average
Portfolio Pulse from Piero Cingari
Regional bank stocks, represented by the SPDR S&P Regional Banking ETF (KRE), have rebounded from the 200-day moving average support, driven by strong Q1 2024 earnings reports. Despite the recovery, they remain nearly 20% below pre-March 2023 levels. Analysts highlight the sector's potential in a higher rate environment, with Metropolitan Bank (MCB) and Huntington Bancshares (HBAN) standing out for their performance and positive financial outlooks. MCB's shares surged 14% with a revised EPS estimate for 2024 and 2025, while HBAN's shares increased by over 6%, supported by solid first-quarter results.

April 22, 2024 | 4:10 pm
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POSITIVE IMPACT
Huntington Bancshares (HBAN) saw a 6% increase in shares in 2024, driven by solid first-quarter results that exceeded expectations, positioning it well for future growth or stock buybacks.
HBAN's positive performance and strong first-quarter results, along with its advantageous capital position, suggest a bullish outlook for the stock in the short term.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
The SPDR S&P Regional Banking ETF (KRE) has rebounded from the 200-day moving average, indicating a positive market response to strong Q1 2024 earnings within the regional banking sector.
KRE's rebound is directly tied to the positive earnings reports from the regional banking sector, suggesting increased investor confidence and potential for continued growth.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Metropolitan Bank (MCB) reported a strong Q1 2024 with a 14% share price increase, revised EPS estimates for 2024 and 2025, and a positive financial outlook, supported by effective deposit gathering and loan portfolio management.
MCB's performance and the upward revision of its EPS estimates reflect its strong financial health and effective management, likely leading to continued investor interest and stock appreciation.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 95