Tronox (TROX Quick QuoteTROX - Free Report) shares ended the last trading session 11.1% higher at $22.81. 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 9.9% gain over the past four weeks.

TROX’s stock popped on a Reuters report that private equity firm Apollo Global Management approached the Stamford-based company with a $4.3 billion all-cash buyout offer. The offer was for $27 on a per-share basis, Reuters reported citing sources. The company has hired advisers to consider the bid and yet to decide on its next steps, per the sources who spoke on condition of anonymity. The sources added that there is no certainty that Tronox will agree to any deal, Reuters noted.

Price and Consensus

This producer of titanium ore and titanium dioxide is expected to post quarterly earnings of $0.67 per share in its upcoming report, which represents a year-over-year change of +1240%. Revenues are expected to be $884.21 million, up 31% 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 Tronox, 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 TROX 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 >>>>