Greenlane Holdings (GNLN) shares ended the last trading session 6% higher at $5.68. 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 22.9% gain over the past four weeks.

Greenlane scored a strong price increase following the news surfacing about legal pot sales expanding across the densely populated Northeastern states. Going by a Feb 28 Bloomberg report, the largest U.S. cannabis companies are expected see a tangible effect soon.

Price and Consensus

This distributor of vaporizers and smoking accessories is expected to post quarterly loss of $0.08 per share in its upcoming report, which represents a year-over-year change of +27.3%. Revenues are expected to be $36.63 million, down 1.7% 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 Greenlane, 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 GNLN 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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