Hovnanian (HOV) shares rallied 10.6% in the last trading session to close at $104.37. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 10.2% loss over the past four weeks.

Homebuilding stocks like Hovnanian surged on Friday as investors cheered a favorable policy outcome for the housing industry. Tariff exceptions for Canada and Mexico "amount to a major win" for homebuilders, the National Association of Home Builders said in a statement.

This homebuilder is expected to post quarterly earnings of $2.45 per share in its upcoming report, which represents a year-over-year change of -63.2%. Revenues are expected to be $733.2 million, up 3.5% 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 Hovnanian, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on HOV 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 >>>>

Hovnanian belongs to the Zacks Building Products - Home Builders industry. Another stock from the same industry, Beazer Homes (BZH), closed the last trading session 7.1% higher at $20.37. Over the past month, BZH has returned -18%.

For Beazer , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.29. This represents a change of -77% from what the company reported a year ago. Beazer currently has a Zacks Rank of #3 (Hold).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Hovnanian Enterprises Inc (HOV) : Free Stock Analysis Report

Beazer Homes USA, Inc. (BZH) : Free Stock Analysis Report

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

Zacks Investment Research