Albemarle (ALB Quick QuoteALB - Free Report) shares soared 6.8% in the last trading session to close at $187.49. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.1% gain over the past four weeks.

ALB’s shares rallied after The Wall Street Journal reported that the Biden administration is targeting at least a 50% reduction in carbon emissions by 2030 and wants 80% of U.S. power to come from clean sources by the end of the decade. The United States currently generates around 20% of its electricity from renewable sources such as wind and solar. Investors appear to have responded positively on prospects that the proposal would lead to higher demand for lithium.

This specialty chemicals company is expected to post quarterly earnings of $0.83 per share in its upcoming report, which represents a year-over-year change of -3.5%. Revenues are expected to be $793.09 million, up 3.8% 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 Albemarle, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on ALB 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 >>>>