Daqo New Energy (DQ Quick QuoteDQ - Free Report) shares ended the last trading session 12.8% higher at $66.17. 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 21.1% loss over the past four weeks.

DQ’s stock gained after worries eased over the Biden administration’s move to ban shipments of some solar materials made in China's Xinjiang region due to forced labor concerns. The United States banned imports of a key solar panel material from China-based Hoshine Silicon Industry Co. However, analysts expect the ban to have a limited impact on Chinese polysilicon manufacturers. The easing of the restriction fears triggered a rally in solar stocks including Daqo New Energy.

This solar panel parts maker is expected to post quarterly earnings of $2.54 per share in its upcoming report, which represents a year-over-year change of +8366.7%. Revenues are expected to be $390.6 million, up 192.5% 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 Daqo, the consensus EPS estimate for the quarter has been revised 14.9% 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 DQ 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 >>>>