Mohawk Group shares ended the last trading session 18.3% higher at $16.20. 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 38.6% loss over the past four weeks.

The stock is benefiting from the company’s underlying strength in its business, driven by continued product growth.

Price and Consensus

This company is expected to post quarterly loss of $0.15 per share in its upcoming report, which represents a year-over-year change of +21.1%. Revenues are expected to be $98.03 million, up 63.9% 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 Mohawk Group, the consensus EPS estimate for the quarter has been revised 163.6% 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 ATER 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 >>>>