KB Financial (KB) Soars 6.8%: Is Further Upside Left in the Stock?

KB Financial (KB) shares soared 6.8% in the last trading session to close at $123.19. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11.7% gain over the past four weeks.

KB Financial shares rallied during Friday's trading session, reaching a 52-week high of $123.19 on the NYSE. The surge was fueled by positive sentiment surrounding South Korean financial stocks, expectations of robust earnings and optimism over enhanced shareholder returns, while the new high likely attracted further momentum-driven buying.

This financial services provider is expected to post quarterly earnings of $3.45 per share in its upcoming report, which represents a year-over-year change of +9.2%. Revenues are expected to be $3.33 billion, up 2.4% 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 KB Financial, 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 KB 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 >>>>

KB Financial is a member of the Zacks Banks - Foreign industry. One other stock in the same industry, Banco Bradesco (BBD), finished the last trading session 4.9% higher at $3.65. BBD has returned 1.2% over the past month.

For Banco Bradesco, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.13. This represents a change of +30% from what the company reported a year ago. Banco Bradesco currently has a Zacks Rank of #2 (Buy).

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

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