PlayAGS (AGS Quick QuoteAGS - Free Report) shares soared 10% in the last trading session to close at $8.79. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.4% loss over the past four weeks.

Shares of PlayAGS appreciated after B. Riley Financial analyst David Bain maintained a buy rating, with a target price of $21. The company has been benefiting from its growing premium game footprint.

This gaming industry supplier is expected to post quarterly loss of $0.19 per share in its upcoming report, which represents a year-over-year change of +38.7%. Revenues are expected to be $62.8 million, up 27.4% 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 PlayAGS, the consensus EPS estimate for the quarter has been revised 6.4% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on AGS 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 >>>>