Applied Materials (AMAT Quick QuoteAMAT - Free Report) shares rallied 4.1% in the last trading session to close at $121.10. 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 0.2% gain over the past four weeks.

Applied Materials extended its rally, driven by the company’s plan to buy back $7.5 billion of stock, in addition to the $1.3 billion remaining from its previous repurchase plan

Price and Consensus

This maker of chipmaking equipment is expected to post quarterly earnings of $1.50 per share in its upcoming report, which represents a year-over-year change of +68.5%. Revenues are expected to be $5.39 billion, up 36.3% 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 Applied Materials, the consensus EPS estimate for the quarter has been revised marginally 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 AMAT 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 >>>>