Precision Drilling (PDS Quick QuotePDS - Free Report) shares rallied 11% in the last trading session to close at $44.86. 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 22.2% gain over the past four weeks.

Precision Drilling Corporation stock ended sharply higher on Friday, driven by optimism over oil prices spurred by a supportive macro backdrop, ongoing government stimulus and the OPEC+ supply curtailments. The steady increase in crude prices to nearly $85 a barrel has lifted the contract drilling space and contributed to the strength in the company. Besides, an improving macro environment prompted Raymond James analyst Andrew Bradford to upgrade the rating on Precision Drilling to Outperform.

This oilfield services company is expected to post quarterly loss of $1.27 per share in its upcoming report, which represents a year-over-year change of +39.5%. Revenues are expected to be $223.2 million, up 44.2% 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 Precision Drilling, the consensus EPS estimate for the quarter has been revised 133.3% 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 PDS 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 >>>>