Gates Industrial Corporation plc GTES shares ended the last trading session 15.3% higher at $17.94. 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 20.2% loss over the past four weeks.

Gates Industrial's rally is driven by President Trump’s announcement of a 90-day pause on tariffs for most countries. This move is aimed to stabilize markets and address global trade concerns.

This manufacturer of power transmission and fluid power systems is expected to post quarterly earnings of $0.33 per share in its upcoming report, which represents a year-over-year change of +6.5%. Revenues are expected to be $826.29 million, down 4.2% 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 Gates Industrial, 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 GTES 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 >>>>

Gates Industrial is a member of the Zacks Manufacturing - General Industrial industry. One other stock in the same industry, Nordson (NDSN), finished the last trading session 11.8% higher at $187.29. NDSN has returned -18.7% over the past month.

Nordson's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $2.36. Compared to the company's year-ago EPS, this represents a change of +0.9%. Nordson 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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