Why They Should Be on Your Radar
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.
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 last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to look at a qualifying stock. Uber Technologies (UBER) holds a Zacks Rank #3 at the moment and its Most Accurate Estimate comes in at $0.63 a share one day away from its upcoming earnings release on August 6, 2025.
Uber Technologies’ Earnings ESP sits at +2.25%, which, as explained above, is calculated by taking the percentage difference between the $0.63 Most Accurate Estimate and the Zacks Consensus Estimate of $0.62.
UBER is one of just a large database of Computer and Technology stocks with positive ESPs. Another solid-looking stock is Roper Technologies (ROP).
Roper Technologies, which is readying to report earnings on October 22, 2025, sits at a Zacks Rank #3 (Hold) right now. Its Most Accurate Estimate is currently $5.11 a share, and ROP is 78 days out from its next earnings report.
For Roper Technologies, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $5.1 is +0.15%.
Because both stocks hold a positive Earnings ESP, UBER and ROP could potentially post earnings beats in their next reports.
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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