Echo Global Logistics shares rallied 52.3% in the last trading session to close at $47.70. 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 1.4% loss over the past four weeks.

The stock surged following its announcement of being acquired by The Jordan Company, a private equity firm. The transaction is valued at approximately $1.3 billion and shareholders of Echo Global will receive cash of $48.25 per share, which is a premium of about 54% over the company’s Sep 9 closing price. It also represents a premium of about 32% over Echo Global’s all-time high price on Sep 10, 2018. Subject to customary closing conditions, the transaction is expected to be completed in the fourth quarter of 2021.
 

Price and Consensus

This provider of supply-chain management services is expected to post quarterly earnings of $0.73 per share in its upcoming report, which represents a year-over-year change of +82.5%. Revenues are expected to be $925.64 million, up 33.9% 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 Echo Global Logistics, 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 ECHO going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>