Kornit Digital Ltd. (KRNT Quick QuoteKRNT - Free Report) shares rallied 4.8% in the last trading session to close at $115.20. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 20.3% gain over the past four weeks.

Kornit Digital’s rally is largely driven by optimism over the company’s strength in its digital printing solutions business, aided by recovery in the printed textile industry. The company also expects to benefit from the execution of its major global expansion projects with customer win.

Price and Consensus

This digital textile printer is expected to post quarterly earnings of $0.22 per share in its upcoming report, which represents a year-over-year change of +833.3%. Revenues are expected to be $77.94 million, up 108.2% 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 Kornit Digital, the consensus EPS estimate for the quarter has been revised 50% 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 KRNT 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 >>>>