Air Transport Services (ATSG) shares ended the last trading session 26.4% higher at $22. 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 16.9% gain over the past four weeks.

The uptick followed the news that ATSG will be acquired by Stonepeak, a leading alternative investment firm specializing in infrastructure and real assets. The enterprise valuation of the all-cash transaction is $3.1 billion.

Under the terms of the definitive agreement, which was unanimously approved by ATSG’s board of directors, ATSG shareholders will receive $22.50 per share in cash. The purchase price represents a premium of approximately 29.3% over ATSG’s closing share price on Nov. 1, 2024. Considering ATSG’s volume-weighted average price over the prior ninety trading days, the purchase price represents a 45.5% premium. Upon completion of the transaction, expected in the first half of 2025, subject to customary closing conditions, ATSG will become a private company.

This air cargo company is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of -40.6%. Revenues are expected to be $507.86 million, down 2.9% 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 Air Transport Services, the consensus EPS estimate for the quarter has been revised 0.8% 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 ATSG going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Air Transport Services is a member of the Zacks Transportation - Air Freight and Cargo industry. One other stock in the same industry, FedEx (FDX), finished the last trading session 1.2% lower at $271.18. FDX has returned 5.2% over the past month.

For FedEx , the consensus EPS estimate for the upcoming report has changed -1.3% over the past month to $3.88. This represents a change of -2.8% from what the company reported a year ago. FedEx currently has a Zacks Rank of #3 (Hold).

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