EURODRY LTD (EDRY Quick QuoteEDRY - Free Report) shares soared 10.4% in the last trading session to close at $33.81. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 16.9% gain over the past four weeks.

The upside was driven by the optimism surrounding the dry bulk market. The northward movement of the Baltic Dry Index is reflective of the rosy scenario surrounding the dry bulk arena. The Baltic dry index tracks rates for capesize, panamax and supramax vessels ferrying dry bulk commodities. Driven by this tailwind, shares of EuroDry have surged 259% over the past six months.

This company is expected to post quarterly earnings of $3.09 per share in its upcoming report, which represents a year-over-year change of +6080%. Revenues are expected to be $14.9 million, up 119.4% 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 EURODRY LTD, 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 EDRY 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 >>>>