Peloton (PTON Quick QuotePTON - Free Report) shares ended the last trading session 11.7% higher at $27.06. 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 37.2% loss over the past four weeks.

Shares of Peloton moved up after the company posted better-than-expected preliminary results for second-quarter fiscal 2022. The company had reported adjusted EBITDA in the range of $(270)-$(260) million compared with the earlier guidance of $(350)-$(325) million. Positive investor sentiments were witnessed as the company initiated corrective measures to improve gross margin  and cost optimizations. Also, revenues are stated to be in line with the company’s expectations.

This exercise bike and treadmill company is expected to post quarterly loss of $1.29 per share in its upcoming report, which represents a year-over-year change of -816.7%. Revenues are expected to be $1.16 billion, up 8.6% 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 Peloton, the consensus EPS estimate for the quarter has been revised 5.5% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on PTON 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 >>>>