PerkinElmer shares rallied 4.6% in the last trading session to close at $190.56. 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 2.8% loss over the past four weeks.

PerkinElmer scored a strong price increase following the news surfacing about the company’s announcement of ramping up its processing operations at the Burnaby refinery. Per a report by Desjardins Securities, this ramp up process is taking place following the restart of the Trans Mountain Pipeline on Dec 5, 2021. The report also took into consideration the impending acquisition of Husky’s retail assets from Cenovus Energy (expected to close in mid-2022) while increasing the broker’s estimate of 2022 adjusted EBITDA estimate.

This maker of scientific instruments is expected to post quarterly earnings of $2.06 per share in its upcoming report, which represents a year-over-year change of -48%. Revenues are expected to be $1.22 billion, down 10.3% 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 PerkinElmer, 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 PKI 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 >>>>