Etsy (ETSY Quick QuoteETSY - Free Report) shares ended the last trading session 3.5% higher at $154.06. 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 34.7% loss over the past four weeks.

Etsy extended its rally, driven by the latest revision made by the KeyBanc analyst Edward Yruma, who upgraded the company’s shares from ‘Sector Weight’ to ‘Overweight’ with a price target of $200. This is primarily attributed to the improving quarter-over-quarter trends and continuous expansion in habitual buyer base. Further, positive contributions from Depop acquisition are benefiting the company. Additionally, strong fourth quarter guidance is instilling investors’ confidence in the stock.

This online crafts marketplace is expected to post quarterly earnings of $0.73 per share in its upcoming report, which represents a year-over-year change of -32.4%. Revenues are expected to be $684.25 million, up 10.8% 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 Etsy, the consensus EPS estimate for the quarter has been revised 3.6% 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 ETSY 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 >>>>