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.

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.

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.

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.

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 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 Cisco Systems?

The final step today is to look at a stock that meets our ESP qualifications. Cisco Systems (CSCO Quick QuoteCSCO - Free Report) earns a #2 (Buy) 22 days from its next quarterly earnings release on May 13, 2026, and its Most Accurate Estimate comes in at $1.06 a share.

By taking the percentage difference between the $1.06 Most Accurate Estimate and the $1.04 Zacks Consensus Estimate, Cisco Systems has an Earnings ESP of +1.92%. Investors should also know that CSCO 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.

CSCO 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 Onto Innovation (ONTO Quick QuoteONTO - Free Report) as well.

Slated to report earnings on May 5, 2026, Onto Innovation holds a #2 (Buy) ranking on the Zacks Rank, and its Most Accurate Estimate is $1.39 a share 14 days from its next quarterly update.

The Zacks Consensus Estimate for Onto Innovation is $1.35, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +2.77%.

CSCO and ONTO's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.

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 >>