Textainer Group shares soared 5.7% in the last trading session to close at $28.47. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 12.4% gain over the past four weeks.

The upside was driven by the improvement in the scenario pertaining to the company’s top line following gradual reopening of the economy in the United States.  Notably, lease rental income is being aided by the increase in fleet size, utilization and average rental rate

Price and Consensus

This shipping container leasing company is expected to post quarterly earnings of $0.98 per share in its upcoming report, which represents a year-over-year change of +476.5%. Revenues are expected to be $192.31 million, up 32.2% 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 Textainer, the consensus EPS estimate for the quarter has been revised 88.5% 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 TGH going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>