Nvidia (NVDA Quick QuoteNVDA - Free Report) shares ended the last trading session 12% higher at $298.01. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 28.5% gain over the past four weeks.

The upswing came after Wells Fargo analyst Aaron Rakers raised the stock’s price target to $320 from $245 citing huge growth opportunity for the company related to metaverse, a digital environment that is accessed with virtual reality tools.

Price and Consensus

This maker of graphics chips for gaming and artificial intelligence is expected to post quarterly earnings of $1.11 per share in its upcoming report, which represents a year-over-year change of +52.1%. Revenues are expected to be $6.83 billion, up 44.5% 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 Nvidia, 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 NVDA going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>