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.

Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.

2 Stocks to Add to Your Watchlist

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. Hasbro (HAS) earns a Zacks Rank #3 20 days from its next quarterly earnings release on February 20, 2025, and its Most Accurate Estimate comes in at $0.38 a share.

HAS has an Earnings ESP figure of 7.33%, which, as explained above, is calculated by taking the percentage difference between the $0.38 Most Accurate Estimate and the Zacks Consensus Estimate of $0.36.

HAS is just one of a large group of Consumer Discretionary stocks with a positive ESP figure. Las Vegas Sands (LVS) is another qualifying stock you may want to consider.

Las Vegas Sands is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on April 16, 2025. LVS' Most Accurate Estimate sits at $0.66 a share 75 days from its next earnings release.

Las Vegas Sands' Earnings ESP figure currently stands at 0.92% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.65.

Because both stocks hold a positive Earnings ESP, HAS and LVS could potentially post earnings beats in their next reports.

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 >>

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

Hasbro, Inc. (HAS) : Free Stock Analysis Report

Las Vegas Sands Corp. (LVS) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research