Wabash National (WNC Quick QuoteWNC - Free Report) shares rallied 7% in the last trading session to close at $20.26. 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 13% gain over the past four weeks.

Wabash, which belongs to the highly cyclical auto sector, extended its rally for the third straight day, driven by optimism over economic recovery, nationwide deployment of COVID-19 vaccines and massive $1.9 trillion fiscal stimulus. The manufacturer of semi-trailers is witnessing an uptick in new orders thanks to improving economic conditions in most of its end markets. Deployment of new technologies and expected improvement in equipment demand poise Wabash for further share price appreciation.

Price and Consensus

This maker of truck trailers is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of +75%. Revenues are expected to be $415 million, up 7.2% 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 Wabash, 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 WNC 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 >>>>