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 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. NetApp (NTAP) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $1.93 a share, just six days from its upcoming earnings release on February 27, 2025.

By taking the percentage difference between the $1.93 Most Accurate Estimate and the $1.90 Zacks Consensus Estimate, NetApp has an Earnings ESP of 1.4%.

NTAP is one of just a large database of Computer and Technology stocks with positive ESPs. Another solid-looking stock is Cisco Systems (CSCO).

Cisco Systems, which is readying to report earnings on May 21, 2025, sits at a Zacks Rank #2 (Buy) right now. It's Most Accurate Estimate is currently $0.91 a share, and CSCO is 89 days out from its next earnings report.

Cisco Systems' Earnings ESP figure currently stands at 0.28% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.91.

NTAP and CSCO'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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