Gerdau (GGB Quick QuoteGGB - Free Report) shares soared 6.1% in the last trading session to close at $5.04. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 14.1% loss over the past four weeks.

Optimism over a strong rebound in the construction markets in Brazil and recovering industrial demand is driving the stock higher. The company is benefiting from strong demand for steel in Brazil and North America across construction and industrial sectors, which is driving its shipments.

This steel producer is expected to post quarterly earnings of $0.33 per share in its upcoming report, which represents a year-over-year change of -28.3%. Revenues are expected to be $3.62 billion, up 59.2% 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 Gerdau, 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 GGB 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 >>>>