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.

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.

Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.

The Zacks Earnings ESP, Explained

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.

Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. 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.

Bringing together a positive earnings ESP alongside a Zacks Rank #3 (Hold) or better has helped stocks report a positive earnings surprise 70% of the time. Furthermore, by using these parameters, investors have seen 28.3% annual returns on average, according to our 10 year backtest.

Stocks with a ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Stocks with rankings of #2 (Buy) and #1 (Strong Buy), or the top 15% and top 5% of stocks, respectively, should outperform the market; Strong Buy stocks should outperform more than any other rank.

Should You Consider Anheuser-Busch Inbev?

The final step today is to look at a stock that meets our ESP qualifications. Anheuser-Busch Inbev (BUD Quick QuoteBUD - Free Report) earns a #3 (Hold) 29 days from its next quarterly earnings release on August 7, 2025, and its Most Accurate Estimate comes in at $0.96 a share.

By taking the percentage difference between the $0.96 Most Accurate Estimate and the $0.89 Zacks Consensus Estimate, Anheuser-Busch Inbev has an Earnings ESP of +7.84%. Investors should also know that BUD is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

BUD is part of a big group of Consumer Staples stocks that boast a positive ESP, and investors may want to take a look at BellRing Brands (BRBR Quick QuoteBRBR - Free Report) as well.

Slated to report earnings on August 4, 2025, BellRing Brands holds a #3 (Hold) ranking on the Zacks Rank, and its Most Accurate Estimate is $0.50 a share 26 days from its next quarterly update.

The Zacks Consensus Estimate for BellRing Brands is $0.49, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +1.10%.

Because both stocks hold a positive Earnings ESP, BUD and BRBR could potentially post earnings beats in their next reports.

Find Stocks to Buy or Sell Before They're Reported

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 >>