NXP Semiconductors (NXPI Quick QuoteNXPI - Free Report) shares soared 9% in the last trading session to close at $199.91. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5.4% loss over the past four weeks.

NXP Semiconductors extended its rally as the stock is moving into the S&P 500 index to replace Flowserve, which is moving to the MidCap 400.

Price and Consensus

This chipmaker is expected to post quarterly earnings of $2.21 per share in its upcoming report, which represents a year-over-year change of +8.3%. Revenues are expected to be $2.55 billion, up 26.4% 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 NXP, 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 NXPI 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 >>>>