Sequans (SQNS Quick QuoteSQNS - Free Report) shares soared 12.9% in the last trading session to close at $6.30. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 7.7% gain over the past four weeks.

Sequans extended its rally for the second straight day, driven by optimism over its outlook for 2021. Expanding IoT opportunity is expected to drive top-line growth. Moreover, strong 5G and CBRS demand boosts prospects.

This chip company is expected to post quarterly loss of $0.18 per share in its upcoming report, which represents a year-over-year change of +35.7%. Revenues are expected to be $14.2 million, up 16.1% 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 Sequans, 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 SQNS 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 >>>>