Moody's (MCO) shares ended the last trading session 10.6% higher at $438.59. 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 10.6% loss over the past four weeks.

Moody's shares rallied sharply as markets responded positively to President Trump’s announcement of a 90-day tariff suspension for non-retaliating countries. The move alleviated trade tensions, boosting investor sentiment and driving a notable surge in MCO stock.

This credit ratings agency is expected to post quarterly earnings of $3.56 per share in its upcoming report, which represents a year-over-year change of +5.6%. Revenues are expected to be $1.89 billion, up 5.9% 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 Moody's, the consensus EPS estimate for the quarter has been revised 0.8% 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 MCO 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 >>>>

Moody's belongs to the Zacks Financial - Miscellaneous Services industry. Another stock from the same industry, ChoiceOne Financial Services, Inc. (COFS), closed the last trading session 3.5% higher at $26.55. Over the past month, COFS has returned -11.8%.

ChoiceOne Financial Services' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.82. Compared to the company's year-ago EPS, this represents a change of +10.8%. ChoiceOne Financial Services currently boasts a Zacks Rank of #3 (Hold).

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

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