Earnings are arguably the most important single number on a company’s quarterly financial report. Wall Street clearly dives into all of the other metrics and management’s input, but the EPS figure helps cut through all the noise.
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.
Now that we understand what the ESP is and how beneficial it can be, let’s dive into a stock that currently fits the bill. Arista Networks (ANET) earns a Zacks Rank #1 right now and its Most Accurate Estimate sits at $0.66 a share, just six days from its upcoming earnings release on August 5, 2025.
ANET has an Earnings ESP figure of +0.96%, which, as explained above, is calculated by taking the percentage difference between the $0.66 Most Accurate Estimate and the Zacks Consensus Estimate of $0.65.
ANET is one of just a large database of Computer and Technology stocks with positive ESPs. Another solid-looking stock is Nvidia (NVDA).
Nvidia, which is readying to report earnings on August 27, 2025, sits at a Zacks Rank #3 (Hold) right now. Its Most Accurate Estimate is currently $1.06 a share, and NVDA is 28 days out from its next earnings report.
Nvidia’s Earnings ESP figure currently stands at +6.03% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.
Because both stocks hold a positive Earnings ESP, ANET and NVDA 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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