Oracle (ORCL) shares ended the last trading session 3.9% higher at $120.87. 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 2.9% loss over the past four weeks.

The upswing in share-price came after after the Information reported that the company is close to a deal for a $10 billion cloud contract with Elon Musk’s artificial intelligence startup xAI. The deal would make xAI one of Oracle's largest customers.

This software maker is expected to post quarterly earnings of $1.64 per share in its upcoming report, which represents a year-over-year change of -1.8%. Revenues are expected to be $14.56 billion, up 5.2% 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 Oracle, the consensus EPS estimate for the quarter has been revised marginally 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 ORCL 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 >>>>

Oracle is part of the Zacks Computer - Software industry. Salesforce.com (CRM), another stock in the same industry, closed the last trading session 0.3% lower at $276.80. CRM has returned 1.7% in the past month.

Salesforce.com's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $2.38. Compared to the company's year-ago EPS, this represents a change of +40.8%. Salesforce.com currently boasts a Zacks Rank of #2 (Buy).

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