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. Enphase Energy (ENPH) earns a Zacks Rank #3 18 days from its next quarterly earnings release on April 22, 2025, and its Most Accurate Estimate comes in at $0.74 a share.

ENPH has an Earnings ESP figure of 3.91%, which, as explained above, is calculated by taking the percentage difference between the $0.74 Most Accurate Estimate and the Zacks Consensus Estimate of $0.71.

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

Suncor Energy is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on May 6, 2025. SU's Most Accurate Estimate sits at $1.01 a share 32 days from its next earnings release.

The Zacks Consensus Estimate for Suncor Energy is $0.95, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 6.32%.

Because both stocks hold a positive Earnings ESP, ENPH and SU could potentially post earnings beats in their next reports.

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

Enphase Energy, Inc. (ENPH) : Free Stock Analysis Report

Suncor Energy Inc. (SU) : Free Stock Analysis Report

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

Zacks Investment Research