Roku (ROKU Quick QuoteROKU - Free Report) shares rallied 4.5% in the last trading session to close at $421.70. 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 16.7% gain over the past four weeks.

The upswing in share price came after a report from Wall Street Journal speculated the potential acquisition of Roku by Comcast Corporation.

Roku's platform revenue is benefiting from aggressive marketing by the streaming service providers. The company operates a streaming-video operating system that is platform neutral, allowing users to access nearly every popular streaming service on its device.

Moreover, the company's native Roku Channel, fueled by recent content acquisitions and rollouts, is witnessing encouraging growth in viewership.

This video streaming company is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of +137.1%. Revenues are expected to be $617.2 million, up 73.3% 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 Roku, 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 ROKU 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 >>>>