How to Find Strong Computer and Technology Stocks Slated for Positive Earnings Surprises

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.

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.

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. Paycom Software (PAYC) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $1.80 a share, just 13 days from its upcoming earnings release on July 30, 2025.

By taking the percentage difference between the $1.80 Most Accurate Estimate and the $1.78 Zacks Consensus Estimate, Paycom Software has an Earnings ESP of +0.98%.

PAYC is part of a big group of Computer and Technology stocks that boast a positive ESP, and investors may want to take a look at Monday.com (MNDY) as well.

Monday.com, which is readying to report earnings on August 11, 2025, sits at a Zacks Rank #3 (Hold) right now. Its Most Accurate Estimate is currently $0.88 a share, and MNDY is 25 days out from its next earnings report.

For Monday.com, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.84 is +4.88%.

PAYC and MNDY’s positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.

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