NN Inc. shares ended the last trading session 10.1% higher at $7.82. 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 2.6% gain over the past four weeks.

The last trading session’s price surge was driven by NN’s impressive results for the fourth quarter and 2020. Also, expectations of pre-pandemic level volumes in Power Solutions and Mobile Solutions as well as cost-containment, driving adjusted earnings before interest, tax, depreciation and amortization in 2021, added strength.

Price and Consensus

This industrial parts maker is expected to post quarterly earnings of $0.10 per share in its upcoming report, which represents a year-over-year change of +900%. Revenues are expected to be $123.05 million, down 38.4% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For NN, 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 NNBR 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 >>>>