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.

Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive 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, 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.

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.

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 Valero Energy?

The final step today is to look at a stock that meets our ESP qualifications. Valero Energy (VLO Quick QuoteVLO - Free Report) earns a #1 (Strong Buy) 30 days from its next quarterly earnings release on July 30, 2026, and its Most Accurate Estimate comes in at $9.57 a share.

By taking the percentage difference between the $9.57 Most Accurate Estimate and the $8.48 Zacks Consensus Estimate, Valero Energy has an Earnings ESP of +12.85%. Investors should also know that VLO 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.

VLO is part of a big group of Oils and Energy stocks that boast a positive ESP, and investors may want to take a look at GE Vernova (GEV Quick QuoteGEV - Free Report) as well.

Slated to report earnings on July 22, 2026, GE Vernova holds a #2 (Buy) ranking on the Zacks Rank, and its Most Accurate Estimate is $3.90 a share 22 days from its next quarterly update.

The Zacks Consensus Estimate for GE Vernova is $3.20, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +21.88%.

Because both stocks hold a positive Earnings ESP, VLO and GEV 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 >>