Avis Budget Group (CAR Quick QuoteCAR - Free Report) shares soared 9.8% in the last trading session to close at $98.79. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.8% loss over the past four weeks.

This increased investor optimism can be attributed to the rising demand for rental vehicles as an increasingly vaccinated population are opting to travel out. Also, incoming vehicle supply and tight average fleet have been aiding revenues per day.

This car rental company is expected to post quarterly earnings of $6.44 per share in its upcoming report, which represents a year-over-year change of +469.9%. Revenues are expected to be $2.81 billion, up 83.5% 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 Avis Budget, 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 CAR 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 >>>>