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.

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.

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. Roper Technologies (ROP) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $4.74 a share, just 12 days from its upcoming earnings release on April 28, 2025.

ROP has an Earnings ESP figure of 0.24%, which, as explained above, is calculated by taking the percentage difference between the $4.74 Most Accurate Estimate and the Zacks Consensus Estimate of $4.73.

ROP is one of just a large database of Computer and Technology stocks with positive ESPs. Another solid-looking stock is Okta (OKTA).

Okta, which is readying to report earnings on June 4, 2025, sits at a Zacks Rank #2 (Buy) right now. It's Most Accurate Estimate is currently $0.77 a share, and OKTA is 49 days out from its next earnings report.

The Zacks Consensus Estimate for Okta is $0.77, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 0.3%.

ROP and OKTA's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.

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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Roper Technologies, Inc. (ROP) : Free Stock Analysis Report

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

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