Calix (CALX) shares rallied 14.5% in the last trading session to close at $78.30. 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 2.2% gain over the past four weeks.

CALX rallied after it announced that the stock will be added to the S&P MidCap 400 Index. The inclusion of the cloud software company to the S&P Index will facilitate index funds that track the mid-cap index to add the stock to their holdings. This is likely to trigger high demand for the tech stock among investors, infusing positive sentiments.

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With an unprecedented surge in online connectivity and the increasing bandwidth access during the pandemic, Calix has been on a joyride with higher revenues over the last two years, thereby boosting its growth potential. Accretive partnerships with communications service providers pose a major tailwind as well.

This cloud, software platforms, systems and services provider for communications service providers is expected to post quarterly earnings of $0.24 per share in its upcoming report, which represents a year-over-year change of -46.7%. Revenues are expected to be $173.08 million, up 1.8% 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 Calix, 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 CALX going forward to see if this recent jump can turn into more strength down the road.