Avient (AVNT) shares rallied 5% in the last trading session to close at $47.22. 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 10.5% gain over the past four weeks.

AVNT’s rally is largely driven by optimism over its outlook for 2021 underpinned by strengthening demand for consumer and healthcare applications. The company is benefiting from strong demand for sustainable solutions, strength across consumer, packaging and healthcare markets, innovative product launches and synergies from the Clariant Masterbatch acquisition.

Price and Consensus

This maker of resins used in plastic pipe and other products is expected to post quarterly earnings of $0.71 per share in its upcoming report, which represents a year-over-year change of +47.9%. Revenues are expected to be $1.09 billion, up 53.1% 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 Avient, the consensus EPS estimate for the quarter has been revised 29.9% 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 AVNT 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 >>>>

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