PROG Holdings (PRG Quick QuotePRG - Free Report) shares rallied 7.9% in the last trading session to close at $46.90. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 0.7% gain over the past four weeks.

PROG Holdings extended its rally for the third consequent day. Optimistic investor sentiments surrounding the expectation of an accelerated recovery of the consumer loan providing sector largely drove the stock. The bullish trend can be attributed to steepening of the yield curve, rising consumer confidence, additional government spending and favorable economic data.

Price and Consensus

This rent-to-own company is expected to post quarterly earnings of $0.91 per share in its upcoming report, which represents a year-over-year change of +7.1%. Revenues are expected to be $663.11 million, down 39.8% 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 PROG Holdings, the consensus EPS estimate for the quarter has been revised 0.9% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on PRG going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>