Strength Seen in Northern Trust (NTRS): Can Its 8.0% Jump Turn into More Strength?

Northern Trust Corporation (NTRS) shares ended the last trading session 8% higher at $120.81. 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 5.7% gain over the past four weeks.The rise in Northern Trust's stock price was primarily driven by a Wall Street Journal report stating that Bank of New York Mellon had approached Northern Trust to discuss a potential merger. According to the WSJ report, senior executives from both firms held at least one meeting, although no specific terms or formal offers were discussed. Despite the early stage of these talks, the news fueled investor optimism and speculation about a possible deal, contributing to the stock's surge.This company is expected to post quarterly earnings of $2.06 per share in its upcoming report, which represents a year-over-year change of +15.7%. Revenues are expected to be $1.97 billion, down 27.5% 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 Northern Trust, the consensus EPS estimate for the quarter has been revised 0.7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on NTRS 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 >>>>Northern Trust is a member of the Zacks Banks - Major Regional industry. One other stock in the same industry, M&T Bank Corporation (MTB), finished the last trading session 2.4% higher at $189.41. MTB has returned 3.1% over the past month.For M&T Bank, the consensus EPS estimate for the upcoming report has changed +0.1% over the past month to $4.03. This represents a change of +6.3% from what the company reported a year ago. M&T Bank currently has a Zacks Rank of #3 (Hold).Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Northern Trust Corporation (NTRS): Free Stock Analysis Report M&T Bank Corporation (MTB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks