NN Inc. shares soared 18% in the last trading session to close at $9.37. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.5% gain over the past four weeks.

NN’s rally is largely driven by optimism over the company’s solid momentum in its Mobile Solutions business, backed by improved demand for its products across the general industrial end market. Notably, the business contributed $77.8 million to sales in first-quarter 2021.

Price and Consensus

This industrial parts maker is expected to post quarterly earnings of $0.12 per share in its upcoming report, which represents a year-over-year change of +209.1%. Revenues are expected to be $119.09 million, down 20.8% 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 NN, the consensus EPS estimate for the quarter has been revised 4% 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 NNBR 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 >>>>