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We expect Campbell Soup Company (CPB - Analyst Report), a high-quality food and simple meal manufacturer, to beat expectations when it reports third-quarter fiscal 2013 results on May 20.

Why a Likely Positive Surprise?

Our proven model shows that Campbell Soup may beat the earnings because it has the right combination of two key components.

Positive Zacks ESP: Campbell Soup currently has an Earnings ESP (Read: Zacks Earnings ESP: A Better Method) of +1.79%. This is because the Most Accurate Estimate stands at 57 cents per share, while the Zacks Consensus Estimate is pegged at 56 cents.

Zacks #2 Rank (Buy): Note that stocks with a Zacks Rank #1, 2 and 3 have higher chances of beating the earnings. The Sell rated stocks (#4 and 5) should never be considered going into an earnings announcement.

The combination of Campbell Soup’s Zacks Rank #2 (Buy) and Earnings ESP of +1.79% makes us confident of a positive earnings beat on May 20.

What is Driving the Better-than-Expected Earnings?

Campbell Soup’s sustained focus on top-line growth and increasing return on investment through strategic frameworks including stabilization of the North American soup and simple meal business, overseas expansion, and growth of healthy beverages and baked snacks business, bode well for the future. Further, we believe that the company’s prudent investment and strategic initiatives toward product innovation and brand building will lead to an increase in its customer base and profitability.

Campbell Soup has surpassed the Zacks Consensus Estimate in the trailing 4 quarters with an average surprise of approximately 6.3%.

Other Stocks to Consider

Campbell Soup is not the only firm looking up this earnings season. The following companies are also likely to beat the earnings estimates in the to-be-reported quarter:

Flowers Foods, Inc. (FLO - Snapshot Report) with Earnings ESP of +6.98% and a Zacks Rank #1 (Strong Buy).

J&J Snack Foods Corp. (JJSF - Snapshot Report) with Earnings ESP of +0.90% and a Zacks Rank #2 (Buy).

ConAgra Foods, Inc. (CAG - Analyst Report) with Earnings ESP of +1.70% and a Zacks Rank #3 (Hold).

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