Beazer Homes USA, Inc. (BZH Quick QuoteBZH - Free Report) shares rallied 6.4% in the last trading session to close at $18.99. 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 6.3% gain over the past four weeks.

Beazer Homes extended its rally for the third consecutive day, driven by optimism over its prospects in the U.S. homebuilding space. Moreover, the latest new home sales data by the Commerce Department for January boosted investors' confidence.

Price and Consensus

This homebuilder is expected to post quarterly earnings of $0.52 per share in its upcoming report, which represents a year-over-year change of +48.6%. Revenues are expected to be $558.8 million, up 14.2% 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 Beazer, 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 BZH 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 >>>>