Knot Offshore (KNOP) shares ended the last trading session 8.1% higher at $5.89. 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 7% loss over the past four weeks.

KNOT Offshore extended its rally for the third straight day, driven by optimism surrounding the tanker market as product tanker rates are currently at healthy levels despite minor hiccups. Also, normalization of economic activities and an uptick in world trade following the removal of COVID-19-induced restrictions are aiding KNOP’s top-line performance.

This tanker company that serves the energy industry is expected to post quarterly earnings of $0.04 per share in its upcoming report, which represents a year-over-year change of +125%. Revenues are expected to be $76.41 million, up 4.6% 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 Knot Offshore, the consensus EPS estimate for the quarter has been revised 300% 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 KNOP 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 >>>>

Knot Offshore belongs to the Zacks Transportation - Shipping industry. Another stock from the same industry, Star Bulk Carriers (SBLK), closed the last trading session 3.7% higher at $15.50. Over the past month, SBLK has returned -11.3%.

Star Bulk Carriers' consensus EPS estimate for the upcoming report has changed -18% over the past month to $0.39. Compared to the company's year-ago EPS, this represents a change of -46.6%. Star Bulk Carriers currently boasts a Zacks Rank of #5 (Strong Sell).

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