Portillo's Inc. (PTLO) shares soared 7.2% in the last trading session to close at $13.39. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 39.1% gain over the past four weeks.

Portillo’s stock rally is driven by optimism regarding the company’s innovative use of technology, and strategic expansion efforts. The successful rollout of self-service kiosks across all restaurants has enhanced the guest experience. Also, it emphasizes on targeted advertising campaigns to drive brand awareness and customer traffic. Additionally, the company’s expansion into key markets, including its first Houston-area location, and the introduction of cost-efficient “restaurants of the future” reflect its focus on growth and operational efficiency. These initiatives, coupled with efforts to optimize cash returns and streamline operations, have fueled investor confidence in the company’s long-term prospects.

This company is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of -53.9%. Revenues are expected to be $184.35 million, down 1.9% 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 Portillo's Inc., the consensus EPS estimate for the quarter has been revised 9.5% 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 PTLO 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 >>>>

Portillo's Inc. is part of the Zacks Retail - Restaurants industry. Darden Restaurants (DRI), another stock in the same industry, closed the last trading session 2.7% higher at $192.62. DRI has returned 0% in the past month.

For Darden Restaurants , the consensus EPS estimate for the upcoming report has changed +0.1% over the past month to $2.82. This represents a change of +7.6% from what the company reported a year ago. Darden Restaurants currently has a Zacks Rank of #2 (Buy).

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