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 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. Expedia (EXPE) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $0.45 a share, just 20 days from its upcoming earnings release on May 8, 2025.

EXPE has an Earnings ESP figure of 3.58%, which, as explained above, is calculated by taking the percentage difference between the $0.45 Most Accurate Estimate and the Zacks Consensus Estimate of $0.43.

EXPE is one of just a large database of Retail-Wholesale stocks with positive ESPs. Another solid-looking stock is Etsy (ETSY).

Slated to report earnings on April 30, 2025, Etsy holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $0.73 a share 12 days from its next quarterly update.

The Zacks Consensus Estimate for Etsy is $0.62, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 17.97%.

EXPE and ETSY'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

Expedia Group, Inc. (EXPE) : Free Stock Analysis Report

Etsy, Inc. (ETSY) : Free Stock Analysis Report

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

Zacks Investment Research