General Electric Company (GE Quick QuoteGE - Free Report) shares rallied 7.1% in the last trading session to close at $14.35. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 1.5% gain over the past four weeks.

GE Renewable Energy’s largest contract for supplying Cypress onshore wind turbines in south-east Asia as well as General Electric’s hint about a year-over-year improvement in cash flow generation in the second quarter of 2021 seems to have lifted investors’ sentiments for the stock. Also, GE Power Conversion’s modernization contract is expected to have been a driving force.

Price and Consensus

This industrial conglomerate is expected to post quarterly earnings of $0.04 per share in its upcoming report, which represents a year-over-year change of +126.7%. Revenues are expected to be $18.32 billion, up 3.2% 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 GE, the consensus EPS estimate for the quarter has been revised 23.1% 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 GE 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 >>>>