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Itron (ITRI) shares rallied 3.4% in the last trading session to close at $103.42. 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 7.6% loss over the past four weeks.

Itron is likely to benefit from data-center-related demand growth, automation of water infrastructure and increasing propensity for safety applications by gas customers. Proliferating adoption of new digital technology and non-wires grid solutions bode well. The transition to asset light operating model is a key growth driver.

Frequent product launches provide additional tailwinds for Itron. The solutions help to address the complexities of grid instability and aid utility firms in gaining increased visibility into the low-voltage distribution grid. With enhanced visibility, utilities will be able to quickly troubleshoot any transformer loading and voltage issues, thereby increasing the usable life of transformers.

This energy and water meter company is expected to post quarterly earnings of $0.95 per share in its upcoming report, which represents a year-over-year change of +46.2%. Revenues are expected to be $599.3 million, up 10.8% 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 Itron, the consensus EPS estimate for the quarter has been revised 1.4% 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 ITRI going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Itron belongs to the Zacks Electronics - Testing Equipment industry. Another stock from the same industry, Cognex Corporation (CGNX), closed the last trading session 2.6% higher at $50.63. Over the past month, CGNX has returned 11.5%.

Cognex's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.20. Compared to the company's year-ago EPS, this represents a change of -37.5%. Cognex currently boasts a Zacks Rank of #3 (Hold).

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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.