Covetrus shares soared 5.6% in the last trading session to close at $28.19. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 7.3% loss over the past four weeks.

This marks the third consecutive trading day of Covetrus’ price rise following the appointment of Paul Fonteyne to its Board of Directors. Management believes that Mr. Fonteyne’s deep pharmaceutical industry experience in both human and animal health markets will benefit the company, which continues with its aim of delivering better care and outcomes within the veterinary industry. Also, the better-than-expected first-quarter 2021 results raise optimism.

Price and Consensus

This animal health technology and services company is expected to post quarterly earnings of $0.23 per share in its upcoming report, which represents a year-over-year change of +21.1%. Revenues are expected to be $1.11 billion, up 8.2% 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 Covetrus, the consensus EPS estimate for the quarter has been revised 10.6% 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 CVET 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 >>>>