Dada Nexus Limited Sponsored ADR (DADA Quick QuoteDADA - Free Report) shares rallied 14% in the last trading session to close at $29.33. 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 22.8% gain over the past four weeks.

Dada Nexus extended its rally, driven by the strong performance delivered by it in the first-quarter 2021 on the heels of solid gross merchandise volume growth. Further, the company has provided improved outlook for the second-quarter 2021 revenues which is instilling investors’ optimism in the stock.

This company is expected to post quarterly loss of $0.35 per share in its upcoming report, which represents a year-over-year change of +20.5%. Revenues are expected to be $204 million, up 8.9% 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 Dada Nexus Limited Sponsored ADR, 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 DADA 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 >>>>