Vroom (VRM Quick QuoteVRM - Free Report) shares soared 9.2% in the last trading session to close at $7.92. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 25.3% loss over the past four weeks.

Yesterday's upside came after famed value investor Bill Miller gave a bullish opinion on used-vehicle e-retailer Vroom. Also, a recent Bank of America Global Research report suggests that the used-car market is likely to sustain momentum and the broader tailwinds for this red-hot space present opportunities for industry participants like Vroom. BofA maintained a 'Buy' rating on Vroom ahead of the firm’s fourth-quarter earnings, slated to be released on Feb 28.

This company is expected to post quarterly loss of $0.77 per share in its upcoming report, which represents a year-over-year change of -75%. Revenues are expected to be $896.78 million, up 121% 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 Vroom, the consensus EPS estimate for the quarter has been revised 11.1% 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 VRM 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 >>>>