CMC Materials shares soared 33.9% in the last trading session to close at $195.50. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.5% gain over the past four weeks.

The upswing in share price movement can be attributed to announcement that CMC Materials has entered into a definitive agreement with Entegris to get acquired for roughly $6.5 billion.

Under the terms of the agreement, CMC Materials shareholders will receive $133 in cash and 0.4506 shares of Entegris common stock for each share of CMC Materials common stock.

This chip equipment maker is expected to post quarterly earnings of $1.75 per share in its upcoming report, which represents a year-over-year change of -8.9%. Revenues are expected to be $316.5 million, up 10% 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 CMC Materials, 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 CCMP 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 >>>>