Oracle (ORCL) shares ended the last trading session 7.2% higher at $172.57. 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 4.8% loss over the past four weeks.

The upswing in share price came after President Donald Trump unveiled a $500 billion artificial intelligence infrastructure partnership between the cloud computing and data storage giant and other AI heavyweights. The AI infrastructure deal, dubbed “Stargate,” involves Oracle, OpenAI (the Microsoft-backed parent of the generative AI ChatGPT program), top AI tech designer Nvidia and Tokyo-headquartered conglomerate SoftBank. The project includes an immediate $100 billion of investment in U.S. infrastructure for the first year and $500 billion over the next four years.

This software maker is expected to post quarterly earnings of $1.48 per share in its upcoming report, which represents a year-over-year change of +5%. Revenues are expected to be $14.36 billion, up 8.1% 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 Oracle, the consensus EPS estimate for the quarter has been revised 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 ORCL 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 >>>>

Oracle belongs to the Zacks Computer - Software industry. Another stock from the same industry, Cadence Design Systems (CDNS), closed the last trading session 1.8% higher at $310.97. Over the past month, CDNS has returned 0.4%.

Cadence's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.82. Compared to the company's year-ago EPS, this represents a change of +31.9%. Cadence currently boasts a Zacks Rank of #3 (Hold).

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