Liquidity Services (LQDT Quick QuoteLQDT - Free Report) shares rallied 37.7% in the last trading session to close at $25.83. 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 1.3% gain over the past four weeks.

Liquidity Services extended its rally, driven by its impressive second-quarter fiscal 2021 results wherein both earnings and revenues topped the estimates and exhibited strong year over year growth. Increasing demand for the company’s solutions remains a positive. Rising adoption of e-commerce marketplace solutions by the large enterprises, small businesses and government entities, is contributing well. Also, growing momentum across the company’s AllSurplus.com marketplace remains noteworthy.

Price and Consensus

This surplus equipment company is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of +210%. Revenues are expected to be $55.37 million, up 4.8% 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 Liquidity Services, 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 LQDT 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 >>>>