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.

Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.

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.

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. Shift4 Payments (FOUR) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $0.91 a share, just 30 days from its upcoming earnings release on May 8, 2025.

Shift4 Payments' Earnings ESP sits at 18.63%, which, as explained above, is calculated by taking the percentage difference between the $0.91 Most Accurate Estimate and the Zacks Consensus Estimate of $0.76.

FOUR is one of just a large database of Business Services stocks with positive ESPs. Another solid-looking stock is Fidelity National Information Services (FIS).

Fidelity National Information Services, which is readying to report earnings on May 5, 2025, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $1.22 a share, and FIS is 27 days out from its next earnings report.

The Zacks Consensus Estimate for Fidelity National Information Services is $1.20, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 2.06%.

FOUR and FIS' 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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Shift4 Payments, Inc. (FOUR) : Free Stock Analysis Report

Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report

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

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