Why They Should Be on Your Radar

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.

The final step today is to look at a stock that meets our ESP qualifications. BILL Holdings (BILL) earns a Zacks Rank #3 13 days from its next quarterly earnings release on August 27, 2025, and its Most Accurate Estimate comes in at $0.42 a share.

BILL Holdings’ Earnings ESP sits at +2.94%, which, as explained above, is calculated by taking the percentage difference between the $0.42 Most Accurate Estimate and the Zacks Consensus Estimate of $0.41.

BILL is one of just a large database of Computer and Technology stocks with positive ESPs. Another solid-looking stock is Meta Platforms (META).

Slated to report earnings on October 29, 2025, Meta Platforms holds a #3 (Hold) ranking on the Zacks Rank, and its Most Accurate Estimate is $6.73 a share 76 days from its next quarterly update.

Meta Platforms’ Earnings ESP figure currently stands at +0.53% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $6.69.

BILL and META’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 >>

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