Roku (ROKU Quick QuoteROKU - Free Report) shares soared 12.6% in the last trading session to close at $473.65. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.7% loss over the past four weeks.

The upswing in share price came after the company witnessed a rise in stock options activity tied to an expiration date. Moreover, the opening ceremonies of the Olympics in Tokyo, Japan held on July 23 is expected to have aided spike in volume. Roku had previously announced a partnership with NBCUniversal, a subsidiary of Comcast, to bring the summer games directly to the home screen of the Roku channel, so user engagement on Roku's services could see a spike in the coming weeks.

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.

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 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 >>>>