AutoNation (AN Quick QuoteAN - Free Report) shares ended the last trading session 8.4% higher at $85.81. 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 2.9% gain over the past four weeks.

Rising vehicle demand amid increasing shift toward personal mobility and easier credit conditions is driving the share price of the auto retailer. Investors are also encouraged by the firm’s revved up e-commerce initiatives—including its digital platform AutoNation Express— which enable customers to buy vehicles online providing them a truly comprehensive and personal experience.

Price and Consensus

This auto retailer is expected to post quarterly earnings of $1.80 per share in its upcoming report, which represents a year-over-year change of +97.8%. Revenues are expected to be $5.08 billion, up 8.9% 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 AutoNation, the consensus EPS estimate for the quarter has been revised 10% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on AN going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>