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 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.

The final step today is to look at a stock that meets our ESP qualifications. Bristol Myers Squibb (BMY) earns a Zacks Rank #3 30 days from its next quarterly earnings release on April 24, 2025, and its Most Accurate Estimate comes in at $1.71 a share.

By taking the percentage difference between the $1.71 Most Accurate Estimate and the $1.55 Zacks Consensus Estimate, Bristol Myers Squibb has an Earnings ESP of 10.48%.

BMY is one of just a large database of Medical stocks with positive ESPs. Another solid-looking stock is Veeva Systems (VEEV).

Veeva Systems is a Zacks Rank #2 (Buy) stock, and is getting ready to report earnings on May 29, 2025. VEEV's Most Accurate Estimate sits at $1.74 a share 65 days from its next earnings release.

Veeva Systems' Earnings ESP figure currently stands at 0.78% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.73.

BMY and VEEV's 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

Bristol Myers Squibb Company (BMY) : Free Stock Analysis Report

Veeva Systems Inc. (VEEV) : Free Stock Analysis Report

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

Zacks Investment Research