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.

The earnings figure itself is key, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb even higher.

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 #3 right now and its Most Accurate Estimate sits at $1.79 a share, just 13 days from its upcoming earnings release on April 22, 2025.

By taking the percentage difference between the $1.79 Most Accurate Estimate and the $1.75 Zacks Consensus Estimate, Seagate has an Earnings ESP of 2.29%.

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

Western Digital is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on April 24, 2025. WDC's Most Accurate Estimate sits at $1.13 a share 15 days from its next earnings release.

Western Digital's Earnings ESP figure currently stands at 6.6% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.06.

Because both stocks hold a positive Earnings ESP, STX and WDC 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 >>

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Seagate Technology Holdings PLC (STX) : Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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