Eli Lilly (LLY Quick QuoteLLY - Free Report) shares soared 10.4% in the last trading session to close at $275.28. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.2% loss over the past four weeks.

Lilly issued a better-than-expected financial guidance for 2022, which pushed its shares up more than 10% on Wednesday. The drug giant also raised its previously issued 2021 sales and earnings projections. The company also discussed its strong pipeline which has the potential to drive growth.

This drugmaker is expected to post quarterly earnings of $2.37 per share in its upcoming report, which represents a year-over-year change of -13.8%. Revenues are expected to be $7.55 billion, up 1.5% 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 Lilly, the consensus EPS estimate for the quarter has been revised 2.6% 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 LLY 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 >>>>