PPG Industries (PPG) shares soared 12.5% in the last trading session to close at $103.11. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 19.2% loss over the past four weeks.

PPG’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 paint and coatings maker is expected to post quarterly earnings of $1.62 per share in its upcoming report, which represents a year-over-year change of -12.9%. Revenues are expected to be $3.64 billion, down 15.5% 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 PPG Industries, the consensus EPS estimate for the quarter has been revised marginally 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 PPG 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 >>>>

PPG Industries belongs to the Zacks Chemical - Specialty industry. Another stock from the same industry, Celanese (CE), closed the last trading session 17.1% higher at $43.90. Over the past month, CE has returned -31.4%.

For Celanese , the consensus EPS estimate for the upcoming report has changed -4.4% over the past month to $0.40. This represents a change of -80.8% from what the company reported a year ago. Celanese currently has a Zacks Rank of #5 (Strong Sell).

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

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