Groupon (GRPN Quick QuoteGRPN - Free Report) shares soared 20% in the last trading session to close at $26.68. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 8.3% loss over the past four weeks.

The upswing in Groupon’s share price can be attributed to an apparent substantial appreciation of the company’s stake in SumUp, a U.K. based payments company. Groupon is well-positioned to benefit from its ongoing pivot strategy along with extensive restructuring efforts.

This online daily deal service is expected to post quarterly earnings of $0.10 per share in its upcoming report, which represents a year-over-year change of -80.4%. Revenues are expected to be $227.58 million, down 33.7% 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 Groupon, 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 GRPN 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 >>>>