BASF SE (BASFY) shares rallied 9.6% in the last trading session to close at $11.81. 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 23.2% loss over the past four weeks.

BASFY's rally is driven by a surge in material stocks after President Trump announced he would pause reciprocal tariffs for 90 days for most countries.

This company is expected to post quarterly earnings of $0.38 per share in its upcoming report, which represents a year-over-year change of -17.4%. Revenues are expected to be $18.77 billion, down 1.5% 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 BASF, the consensus EPS estimate for the quarter has been revised 4.8% 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 BASFY 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 >>>>

BASF is a member of the Zacks Chemical - Diversified industry. One other stock in the same industry, Compass Minerals (CMP), finished the last trading session 5.5% higher at $9.91. CMP has returned -9.3% over the past month.

For Compass , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.39. This represents a change of -73.8% from what the company reported a year ago. Compass currently has a Zacks Rank of #3 (Hold).

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

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