AssetMark Financial (AMK Quick QuoteAMK - Free Report) shares ended the last trading session 5.2% higher at $24.85. 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 0.4% loss over the past four weeks.

Increased optimism over an accelerated recovery of the investment management industry following increase in client activities and rise in market volatility, on account of vaccine developments and stimulus checks, primarily drove the stock higher.

Price and Consensus

This financial services company is expected to post quarterly earnings of $0.31 per share in its upcoming report, which represents a year-over-year change of +29.2%. Revenues are expected to be $121.35 million, up 5.6% 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 AssetMark Financial, the consensus EPS estimate for the quarter has been revised 13.3% 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 AMK 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 >>>>