West Bancorp (WTBA): Positive Earnings Estimates May Push Stock Higher

West Bancorp (WTBA) appears to be a promising addition to your investment portfolio, especially considering the recent positive revisions in the company's earnings estimates. The stock has shown a notable upward trend lately, and this momentum might continue as its earnings outlook improves further.

The increase in earnings estimate revisions indicates growing confidence among analysts regarding the financial outlook of West Bancorp, the parent company of West Bank. Historical data demonstrates a strong correlation between the trends of revisions in earnings estimates and fluctuations in stock prices. Therefore, it is reasonable to expect that these improved forecasts will be reflected in West Bancorp's stock performance. This principle is central to the Zacks Rank, a stock rating system designed around this insight.

The Zacks Rank uses a five-grade rating system that ranges from #1 (Strong Buy) to #5 (Strong Sell). It has consistently shown an excellent track record for performance, with Zacks #1 Ranked stocks achieving an average annual return of +25% since 2008.

Recently, the consensus earnings estimates for West Bancorp have increased substantially, showing significant agreement among analysts regarding the company's expected performance.

Current Quarter Estimate Revisions

The earnings projection for the current quarter stands at $0.40 per share, reflecting a notable growth of +48.15% compared to the earnings reported a year ago. Over the past 30 days, only one earnings estimate has been revised upwards for West Bancorp, while no estimates moved downward. Consequently, the Zacks Consensus Estimate for the quarter has surged by 21.21%.

Current Year Estimate Revisions

For the full year, West Bancorp is expected to earn approximately $1.40 per share, which indicates a slight decrease of -2.78% from the previous year. However, the trends in estimate revisions for the current year show promise, with one higher estimate recently compared to no negative changes. The consensus estimate has experienced an increase of 7.69% over the past month.

Favorable Zacks Rank

Thanks to the positive revisions in earnings estimates, West Bancorp currently holds a Zacks Rank of #2 (Buy). This ranking tool assists investors in leveraging the advantages of earnings estimate revisions to make informed investment decisions. Stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) tend to outperform the broader market, specifically the S&P 500 significantly.

Bottom Line

Investors have been showing confidence in West Bancorp, as evidenced by the stock's 9.5% gain over the last month. With continued improvement in earnings growth prospects, considering an investment in West Bancorp could be worthwhile for your portfolio.

WestBancorp, Stocks, Earnings