Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.

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 Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate. The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction.

The final step today is to look at a stock that meets our ESP qualifications. C.H. Robinson Worldwide (CHRW) earns a Zacks Rank #2 14 days from its next quarterly earnings release on January 29, 2025, and its Most Accurate Estimate comes in at $1.15 a share.

C.H. Robinson Worldwide's Earnings ESP sits at 3.32%, which, as explained above, is calculated by taking the percentage difference between the $1.15 Most Accurate Estimate and the Zacks Consensus Estimate of $1.12.

CHRW is part of a big group of Transportation stocks that boast a positive ESP, and investors may want to take a look at United Parcel Service (UPS) as well.

United Parcel Service is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on January 30, 2025. UPS' Most Accurate Estimate sits at $2.54 a share 15 days from its next earnings release.

For United Parcel Service, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $2.52 is 0.97%.

CHRW and UPS' 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 >>

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

C.H. Robinson Worldwide, Inc. (CHRW) : Free Stock Analysis Report

United Parcel Service, Inc. (UPS) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research