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 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.

With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure. The system also utilizes our core Zacks Rank to provide a stronger system for identifying stocks that might beat their next quarterly earnings estimate and possibly see the stock price climb.

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 Coeur Mining?

The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Coeur Mining (CDE Quick QuoteCDE - Free Report) holds a #1 (Strong Buy) at the moment and its Most Accurate Estimate comes in at $0.33 a share 21 days away from its upcoming earnings release on October 29, 2025.

Coeur Mining's Earnings ESP sits at +35.62%, which, as explained above, is calculated by taking the percentage difference between the $0.33 Most Accurate Estimate and the Zacks Consensus Estimate of $0.24. CDE is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

CDE is just one of a large group of Basic Materials stocks with a positive ESP figure. Lithium Americas Corp. (LAC Quick QuoteLAC - Free Report) is another qualifying stock you may want to consider.

Lithium Americas Corp. is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on November 4, 2025. LAC's Most Accurate Estimate sits at -$0.04 a share 27 days from its next earnings release.

Lithium Americas Corp.'s Earnings ESP figure currently stands at +33.85% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of -$0.05.

CDE and LAC's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.

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 >>