Melco Resorts (MLCO Quick QuoteMLCO - Free Report) shares ended the last trading session 16.6% higher at $11.10. 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 3% gain over the past four weeks.

Shares of Melco Resorts appreciated after the Macau government proposed new amendments with respect to gaming concession renewals. The announcement removes the fear of potential dilution of existing casino operators in the region. The new rules are subject to approval by the Macau legislature.

This casino company is expected to post quarterly loss of $0.40 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $460.08 million, down 12.9% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Melco, 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 MLCO 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 >>>>