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Image: Bigstock (TREE) Stock Jumps 10.8%: Will It Continue to Soar?

Read MoreHide Full Article (TREE - Free Report) shares soared 10.8% in the last trading session to close at $185.79. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 28.5% loss over the past four weeks. scored a second consecutive day of price increase. Increased optimism over an accelerated recovery of the banking industry on the back of extensive vaccination drive, additional government spending and an expectation of robust economic growth mainly drove the stock higher.

Price and Consensus

Price Consensus Chart for TREE

This mortgage lending service provider is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents a year-over-year change of -37%. Revenues are expected to be $271.01 million, up 47% 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, the consensus EPS estimate for the quarter has been revised 35.6% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on TREE 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 >>>>

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