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.

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.

Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.

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.

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.

When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% 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 Martin Marietta?

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. Martin Marietta (MLM Quick QuoteMLM - Free Report) earns a #3 (Hold) right now and its Most Accurate Estimate sits at $6.91 a share, just 29 days from its upcoming earnings release on November 3, 2026.

Martin Marietta's Earnings ESP sits at +4.44%, which, as explained above, is calculated by taking the percentage difference between the $6.91 Most Accurate Estimate and the Zacks Consensus Estimate of $6.62. MLM 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.

MLM is just one of a large group of Construction stocks with a positive ESP figure. SPX Technologies (SPXC Quick QuoteSPXC - Free Report) is another qualifying stock you may want to consider.

Slated to report earnings on October 29, 2026, SPX Technologies holds a #3 (Hold) ranking on the Zacks Rank, and its Most Accurate Estimate is $2.26 a share 24 days from its next quarterly update.

SPX Technologies' Earnings ESP figure currently stands at +3.71% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $2.17.

MLM and SPXC'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 >>