Why They Should Be on Your Radar

Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.

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 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. IBM (IBM) earns a Zacks Rank #2 right now and its Most Accurate Estimate sits at $2.48 a share, just six days from its upcoming earnings release on October 22, 2025.

IBM’s Earnings ESP sits at +2.2%, which, as explained above, is calculated by taking the percentage difference between the $2.48 Most Accurate Estimate and the Zacks Consensus Estimate of $2.43.

IBM is just one of a large group of Computer and Technology stocks with a positive ESP figure. Marvell Technology (MRVL) is another qualifying stock you may want to consider.

Marvell Technology, which is readying to report earnings on December 2, 2025, sits at a Zacks Rank #3 (Hold) right now. Its Most Accurate Estimate is currently $0.75 a share, and MRVL is 47 days out from its next earnings report.

For Marvell Technology, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.74 is +1.35%.

Because both stocks hold a positive Earnings ESP, IBM and MRVL 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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