Earnings Estimates Moving Higher for FinWise Bancorp (FINW): Time to Buy?

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, October 29th:

Iamgold IAG: This international gold exploration and mining company based in Canada, has a Zacks Rank #1(Strong Buy), and witnessed the Zacks Consensus Estimate for its cuurent year earnings increasing 35.9% over the last 60 days.

Iamgold Corporation Price and Consensus

Iamgold Corporation price-consensus-chart | Iamgold Corporation Quote

Iamgold’ shares gained 43.0% over the last three month compared with the S&P 500’s gain of 6.5%. The company possesses a Momentum Score of A.

Iamgold Corporation Price

Iamgold Corporation price | Iamgold Corporation Quote

Third Coast Bancshares TCBX This commercially focused, bank holding company operating primarily in the Greater Houston, Dallas-Fort Worth and Austin-San Antonio markets, has a Zacks Rank #1, and witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.1% over the last 60 days.

Third Coast Bancshares, Inc. Price and Consensus

Third Coast Bancshares, Inc. price-consensus-chart | Third Coast Bancshares, Inc. Quote

Third Coast Bancshares’ shares gained 37.7% over the last three month compared with the S&P 500’s gain of 6.5%. The company possesses a Momentum Score of A.

Third Coast Bancshares, Inc. Price

Third Coast Bancshares, Inc. price | Third Coast Bancshares, Inc. Quote

FinWise Bancorp FINW This bank holding company headquartered in Murray, Utah is a lender to and takes deposits from consumers and small businesses, has a Zacks Rank #1, and witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.6% over the last 60 days.

FinWise Bancorp Price and Consensus

FinWise Bancorp price-consensus-chart | FinWise Bancorp Quote

FinWise Bancorp’ shares gained 33.4% over the last three month compared with the S&P 500’s gain of 6.5%. The company possesses a Momentum Score of A.

FinWise Bancorp Price

FinWise Bancorp price | FinWise Bancorp Quote

See the full list of top ranked stocks here

Learn more about the Momentum score and how it is calculated here.

Zacks Investment Research

While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy.

Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, etc. -- that could keep the momentum in the stock going.

Investors looking to make a profit from stocks that are currently on the move may find our "Recent Price Strength" screen pretty useful. This predefined screen comes handy in spotting stocks that are on an uptrend backed by strength in their fundamentals, and trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.

FinWise Bancorp

(FINW) is one of the several suitable candidates that passed through the screen. Here are the key reasons why it could be a profitable bet for "trend" investors.

A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. FINW is quite a good fit in this regard, gaining 28.5% over this period.

However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 8.6% over the past four weeks ensures that the trend is still in place for the stock of this company.

Moreover, FINW is currently trading at 93.3% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.

Looking at the fundamentals, the stock currently carries a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here

Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.

So, the price trend in FINW may not reverse anytime soon.

In addition to FINW, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.

This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.

However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.

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Zacks Investment Research