How to Find Strong Computer and Technology Stocks Slated for Positive Earnings Surprises
Earnings are arguably the most important single number on a company’s quarterly financial report. Wall Street clearly dives into all of the other metrics and management’s input, but the EPS figure helps cut through all the noise.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.
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. Monday.com (MNDY) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $0.89 a share, just 11 days from its upcoming earnings release on August 11, 2025.
Monday.com’s Earnings ESP sits at +5.08%, which, as explained above, is calculated by taking the percentage difference between the $0.89 Most Accurate Estimate and the Zacks Consensus Estimate of $0.84.
MNDY is one of just a large database of Computer and Technology stocks with positive ESPs. Another solid-looking stock is T-Mobile (TMUS).
Slated to report earnings on October 22, 2025, T-Mobile holds a #3 (Hold) ranking on the Zacks Rank, and its Most Accurate Estimate is $2.75 a share 83 days from its next quarterly update.
The Zacks Consensus Estimate for T-Mobile is $2.73, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +0.75%.
MNDY and TMUS’ positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
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
link
