How to Find Strong Computer and Technology Stocks Slated for Positive Earnings Surprises

How to Find Strong Computer and Technology Stocks Slated for Positive Earnings Surprises

Wall Street watches a company’s quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.

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.

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. ASML (ASML) earns a Zacks Rank #3 30 days from its next quarterly earnings release on April 16, 2025, and its Most Accurate Estimate comes in at $6.40 a share.

ASML’s Earnings ESP sits at 4.58%, which, as explained above, is calculated by taking the percentage difference between the $6.40 Most Accurate Estimate and the Zacks Consensus Estimate of $6.12.

ASML is just one of a large group of Computer and Technology stocks with a positive ESP figure. Autodesk (ADSK) is another qualifying stock you may want to consider.

Slated to report earnings on June 10, 2025, Autodesk holds a #3 (Hold) ranking on the Zacks Rank, and it’s Most Accurate Estimate is $2.14 a share 85 days from its next quarterly update.

For Autodesk, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $2.14 is 0.08%.

ASML and ADSK’s positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.

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 >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

ASML Holding N.V. (ASML) : Free Stock Analysis Report

Autodesk, Inc. (ADSK) : Free Stock Analysis Report

link