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Cinemark Holdings (CNK) shares rallied 6.5% in the last trading session to close at $20.75. 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 9% gain over the past four weeks.

Shares of Cinemark jumped, after an analyst at Roth MKM upgraded the company’s rating. Optimism is fueled by anticipated improvements in box office performance driven by a strong lineup of blockbuster releases and the company's strategic debt reduction plans. Furthermore, the potential reintroduction of capital returns, such as dividends or share buybacks, after debt reduction and achieving optimal leverage levels, enhances investor confidence.

This movie theater owner is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of -86.3%. Revenues are expected to be $709.49 million, down 24.7% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Cinemark, the consensus EPS estimate for the quarter has been revised 43.5% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on CNK 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 >>>>

Cinemark belongs to the Zacks Leisure and Recreation Services industry. Another stock from the same industry, Royal Caribbean (RCL), closed the last trading session 2.3% higher at $154.52. Over the past month, RCL has returned 1.8%.

For Royal Caribbean, the consensus EPS estimate for the upcoming report has changed +0.4% over the past month to $2.76. This represents a change of +51.7% from what the company reported a year ago. Royal Caribbean currently has a Zacks Rank of #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.