Sharps Compliance Corp. shares ended the last trading session 5.9% higher at $12.66. 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 22.1% loss over the past four weeks.

Sharps Compliance’s rally is largely driven by optimism over the solid momentum across its business backed by strength across several end markets including the retail, healthcare and long-term care. The company expects strong demand for its services to continue through 2021 amid developments like the consistent roll-out of the COVID-19 vaccines and increased seasonal flu-shot demand.

This medical waste management company is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of +61.5%. Revenues are expected to be $24.06 million, up 91.4% 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 Sharps Compliance, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on SMED going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>