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 Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information. With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the 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. Seagate (STX) earns a Zacks Rank #2 right now and its Most Accurate Estimate sits at $1.55 a share, just four days from its upcoming earnings release on October 22, 2024.

By taking the percentage difference between the $1.55 Most Accurate Estimate and the $1.48 Zacks Consensus Estimate, Seagate has an Earnings ESP of 5.09%.

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

Amkor Technology is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on October 28, 2024. AMKR's Most Accurate Estimate sits at $0.50 a share 10 days from its next earnings release.

Amkor Technology's Earnings ESP figure currently stands at 0.81% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.50.

STX and AMKR's 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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Seagate Technology Holdings PLC (STX) : Free Stock Analysis Report

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