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.

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 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.

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 #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 International Seaways?

Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. International Seaways (INSW Quick QuoteINSW - Free Report) earns a #1 (Strong Buy) right now and its Most Accurate Estimate sits at $5.45 a share, just seven days from its upcoming earnings release on August 10, 2026.

International Seaways' Earnings ESP sits at +3.10%, which, as explained above, is calculated by taking the percentage difference between the $5.45 Most Accurate Estimate and the Zacks Consensus Estimate of $5.28. INSW 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.

INSW is one of just a large database of Transportation stocks with positive ESPs. Another solid-looking stock is Alaska Air Group (ALK Quick QuoteALK - Free Report) .

Alaska Air Group is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on October 22, 2026. ALK's Most Accurate Estimate sits at $1.13 a share 80 days from its next earnings release.

For Alaska Air Group, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.02 is +10.15%.

Because both stocks hold a positive Earnings ESP, INSW and ALK 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 >>