Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.

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 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.

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.

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.

Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.

Should You Consider Advanced Drainage Systems?

The final step today is to look at a stock that meets our ESP qualifications. Advanced Drainage Systems (WMS Quick QuoteWMS - Free Report) earns a #3 (Hold) two days from its next quarterly earnings release on May 21, 2026, and its Most Accurate Estimate comes in at $1.02 a share.

Advanced Drainage Systems' Earnings ESP sits at +2.00%, which, as explained above, is calculated by taking the percentage difference between the $1.02 Most Accurate Estimate and the Zacks Consensus Estimate of $1. WMS 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.

WMS is just one of a large group of Construction stocks with a positive ESP figure. Quanta Services (PWR Quick QuotePWR - Free Report) is another qualifying stock you may want to consider.

Quanta Services is a Zacks Rank #1 (Strong Buy) stock, and is getting ready to report earnings on July 30, 2026. PWR's Most Accurate Estimate sits at $3.31 a share 72 days from its next earnings release.

The Zacks Consensus Estimate for Quanta Services is $3.26, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +1.58%.

WMS and PWR'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 >>