Mayville Engineering Company, Inc. (MEC Quick QuoteMEC - Free Report) shares ended the last trading session 6.3% higher at $20.88. 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 18.4% gain over the past four weeks.

Positive investor sentiments were witnessed as the company has been benefiting from new technology and automation investments in factories and the cost-optimizing initiatives implemented over the past year. Also, the company recently finalized an agreement to open a new manufacturing facility in Michigan, thereby helping align production capacity with a new strategic customer relationship.

This company is expected to post quarterly earnings of $0.18 per share in its upcoming report, which represents a year-over-year change of +151.4%. Revenues are expected to be $117.97 million, up 88.5% 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 Mayville Engineering, 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 MEC 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 >>>>