Harley-Davidson (HOG Quick QuoteHOG - Free Report) shares ended the last trading session 9% higher at $51.96. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 17.9% gain over the past four weeks.

Shares of the U.S. motorcycle giant rallied after the European Union  announced its decision to avert steep tariff hikes on Harley-Davidson Motorcycles, as part of a temporary trade truce with the United States. The company's bikes are now subjected to a 31% tariff, instead of the previously planned tariff of 56%. In fact, shares of the firm hit a three-year high after the announcement of the news. 

Price and Consensus

This motorcycle maker is expected to post quarterly earnings of $1.13 per share in its upcoming report, which represents a year-over-year change of +288.3%. Revenues are expected to be $1.35 billion, up 101.4% 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 Harley-Davidson, the consensus EPS estimate for the quarter has been revised 17.6% 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 HOG 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 >>>>