Enviva Partners (EVA Quick QuoteEVA - Free Report) shares rallied 14.9% in the last trading session to close at $64.05. 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 4.9% gain over the past four weeks.

The latest uptick in Enviva Partner’s share price can be attributed to its recently made announcement involving the acquisition of all its ownership interests in Enviva Holdings. The transaction is expected to offer substantial cash flow accretion beginning in 2024. The deal also extends fully contracted business by increasing contract backlog to more than $21 billion. Along with this, Enviva Partner also revealed plans to convert its organizational structure from a master limited partnership to a corporation under the name of Enviva Inc.  

This master limited partnership is expected to post quarterly earnings of $0.15 per share in its upcoming report, which represents a year-over-year change of +114.3%. Revenues are expected to be $295.09 million, up 30.8% 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 Enviva Partners, 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 EVA 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 >>>>