Tree.com (TREE) shares soared 5.8% in the last trading session to close at $49.26. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.8% gain over the past four weeks.

LendingTree stock is witnessing a strong price increase driven by its strong fourth-quarter 2024 results and upbeat 2025 outlook. For 2025, the company forecasts revenue growth of 9-14% on a year over year basis to $985M-$1.025B, with double-digit gains in the Home and Consumer segments and modest growth in Insurance. Investors are also gaining interest in TREE stock as the company is emphasizing on expense discipline and improving leverage.

This mortgage lending service provider is expected to post quarterly earnings of $0.74 per share in its upcoming report, which represents a year-over-year change of +5.7%. Revenues are expected to be $244.03 million, up 45.4% 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 Tree.com, the consensus EPS estimate for the quarter has been revised 435.3% 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 TREE going forward to see if this recent jump can turn into more strength down the road.

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

Tree.com is part of the Zacks Financial - Mortgage & Related Services industry. $Ellington Financial Inc.(EFC-B)$ (EFC), another stock in the same industry, closed the last trading session 2.3% higher at $13.40. EFC has returned 1.7% in the past month.

For Ellington Financial , the consensus EPS estimate for the upcoming report has changed -2.6% over the past month to $0.38. This represents a change of +35.7% from what the company reported a year ago. Ellington Financial currently has a Zacks Rank of #2 (Buy).

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This article originally published on Zacks Investment Research (zacks.com).

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