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 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 Carnival?

The final step today is to look at a stock that meets our ESP qualifications. Carnival (CCL Quick QuoteCCL - Free Report) earns a #3 (Hold) 12 days from its next quarterly earnings release on September 29, 2026, and its Most Accurate Estimate comes in at $1.37 a share.

By taking the percentage difference between the $1.37 Most Accurate Estimate and the $1.36 Zacks Consensus Estimate, Carnival has an Earnings ESP of +0.92%. Investors should also know that CCL 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.

CCL is just one of a large group of Consumer Discretionary stocks with a positive ESP figure. Wolverine World Wide (WWW Quick QuoteWWW - Free Report) is another qualifying stock you may want to consider.

Slated to report earnings on November 4, 2026, Wolverine World Wide holds a #2 (Buy) ranking on the Zacks Rank, and its Most Accurate Estimate is $0.47 a share 48 days from its next quarterly update.

The Zacks Consensus Estimate for Wolverine World Wide is $0.45, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +5.62%.

CCL and WWW'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 >>