We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Looking for Stocks with Positive Earnings Momentum? Check Out These 2 Computer and Technology Names
Read MoreHide Full Article
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.
The earnings figure itself is key, of course, 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 and vice versa.
Hunting for 'earnings whispers' or companies poised to beat their quarterly earnings estimates is a somewhat common practice. But that doesn't make it easy. One way that has been proven to work is by using the Zacks Earnings ESP tool.
The Zacks Earnings ESP, Explained
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.
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.
In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.
Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, 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 Paycom Software?
The final step today is to look at a stock that meets our ESP qualifications. Paycom Software (PAYC - Free Report) earns a #3 (Hold) 13 days from its next quarterly earnings release on July 30, 2025, and its Most Accurate Estimate comes in at $1.80 a share.
By taking the percentage difference between the $1.80 Most Accurate Estimate and the $1.78 Zacks Consensus Estimate, Paycom Software has an Earnings ESP of +0.98%. Investors should also know that PAYC 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.
PAYC is part of a big group of Computer and Technology stocks that boast a positive ESP, and investors may want to take a look at Monday.com (MNDY - Free Report) as well.
Slated to report earnings on August 11, 2025, Monday.com holds a #3 (Hold) ranking on the Zacks Rank, and its Most Accurate Estimate is $0.88 a share 25 days from its next quarterly update.
Monday.com's Earnings ESP figure currently stands at +4.88% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.84.
Because both stocks hold a positive Earnings ESP, PAYC and MNDY 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 >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Looking for Stocks with Positive Earnings Momentum? Check Out These 2 Computer and Technology Names
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.
The earnings figure itself is key, of course, 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 and vice versa.
Hunting for 'earnings whispers' or companies poised to beat their quarterly earnings estimates is a somewhat common practice. But that doesn't make it easy. One way that has been proven to work is by using the Zacks Earnings ESP tool.
The Zacks Earnings ESP, Explained
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.
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.
In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.
Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, 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 Paycom Software?
The final step today is to look at a stock that meets our ESP qualifications. Paycom Software (PAYC - Free Report) earns a #3 (Hold) 13 days from its next quarterly earnings release on July 30, 2025, and its Most Accurate Estimate comes in at $1.80 a share.
By taking the percentage difference between the $1.80 Most Accurate Estimate and the $1.78 Zacks Consensus Estimate, Paycom Software has an Earnings ESP of +0.98%. Investors should also know that PAYC 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.
PAYC is part of a big group of Computer and Technology stocks that boast a positive ESP, and investors may want to take a look at Monday.com (MNDY - Free Report) as well.
Slated to report earnings on August 11, 2025, Monday.com holds a #3 (Hold) ranking on the Zacks Rank, and its Most Accurate Estimate is $0.88 a share 25 days from its next quarterly update.
Monday.com's Earnings ESP figure currently stands at +4.88% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.84.
Because both stocks hold a positive Earnings ESP, PAYC and MNDY 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 >>