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, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.

The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.

When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% 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 Thermo Fisher Scientific?

The final step today is to look at a stock that meets our ESP qualifications. Thermo Fisher Scientific (TMO Quick QuoteTMO - Free Report) earns a #3 (Hold) 10 days from its next quarterly earnings release on April 23, 2026, and its Most Accurate Estimate comes in at $5.27 a share.

TMO has an Earnings ESP figure of +1.30%, which, as explained above, is calculated by taking the percentage difference between the $5.27 Most Accurate Estimate and the Zacks Consensus Estimate of $5.21. Thermo Fisher Scientific is one of a large database 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.

TMO is just one of a large group of Medical stocks with a positive ESP figure. Royalty Pharma (RPRX Quick QuoteRPRX - Free Report) is another qualifying stock you may want to consider.

Royalty Pharma is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on May 14, 2026. RPRX's Most Accurate Estimate sits at $1.30 a share 31 days from its next earnings release.

For Royalty Pharma, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.22 is +6.85%.

Because both stocks hold a positive Earnings ESP, TMO and RPRX 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 >>