GameStop (GME Quick QuoteGME - Free Report) shares soared 27.5% in the last trading session to close at $210.29. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 10.4% loss over the past four weeks.

The meme-stock frenzy on Wall Street buoyed shares of GameStop. Apparently, there was no company-specific news behind this rally. GameStop has been undertaking prudent efforts to transform its business. These include investments toward boosting omni-channel capabilities and enhancing fulfillment capabilities such as the rollout of the same-day delivery option as well as several flexible payment options.

This video game retailer is expected to post quarterly loss of $0.42 per share in its upcoming report, which represents a year-over-year change of +70%. Revenues are expected to be $1.12 billion, up 18.7% 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 GameStop, 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 GME 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 >>>>