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Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.
2 Stocks to Add to Your Watchlist
The Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.
The final step today is to look at a stock that meets our ESP qualifications. Autodesk (ADSK) earns a Zacks Rank #3 20 days from its next quarterly earnings release on May 22, 2025, and its Most Accurate Estimate comes in at $2.15 a share.
ADSK has an Earnings ESP figure of 0.51%, which, as explained above, is calculated by taking the percentage difference between the $2.15 Most Accurate Estimate and the Zacks Consensus Estimate of $2.14.
ADSK is just one of a large group of Computer and Technology stocks with a positive ESP figure. T-Mobile (TMUS) is another qualifying stock you may want to consider.
T-Mobile is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on July 30, 2025. TMUS' Most Accurate Estimate sits at $2.71 a share 89 days from its next earnings release.
For T-Mobile, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $2.69 is 0.54%.
ADSK and TMUS' positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
Find Stocks to Buy or Sell Before They're Reported
Use the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
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