Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.

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 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. Suncor Energy (SU) earns a Zacks Rank #3 30 days from its next quarterly earnings release on February 19, 2025, and its Most Accurate Estimate comes in at $0.88 a share.

Suncor Energy's Earnings ESP sits at 8.64%, which, as explained above, is calculated by taking the percentage difference between the $0.88 Most Accurate Estimate and the Zacks Consensus Estimate of $0.81.

SU is part of a big group of Oils-Energy stocks that boast a positive ESP, and investors may want to take a look at Canadian Solar (CSIQ) as well.

Canadian Solar, which is readying to report earnings on March 13, 2025, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently -$0.15 a share, and CSIQ is 52 days out from its next earnings report.

The Zacks Consensus Estimate for Canadian Solar is -$0.21, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 29.41%.

SU and CSIQ'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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