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.
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. Analog Devices (ADI) earns a Zacks Rank #3 12 days from its next quarterly earnings release on August 20, 2025, and its Most Accurate Estimate comes in at $1.94 a share.
By taking the percentage difference between the $1.94 Most Accurate Estimate and the $1.93 Zacks Consensus Estimate, Analog Devices has an Earnings ESP of +0.72%.
ADI is just one of a large group of Computer and Technology stocks with a positive ESP figure. Jabil (JBL) is another qualifying stock you may want to consider.
Jabil, which is readying to report earnings on September 25, 2025, sits at a Zacks Rank #2 (Buy) right now. Its Most Accurate Estimate is currently $3.03 a share, and JBL is 48 days out from its next earnings report.
For Jabil, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $2.92 is +3.68%.
Because both stocks hold a positive Earnings ESP, ADI and JBL could potentially post earnings beats in their next reports.
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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Analog Devices, Inc. (ADI) : Free Stock Analysis Report
Jabil, Inc. (JBL) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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