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 is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information.

Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.

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.

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 Rivian Automotive?

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. Rivian Automotive (RIVN Quick QuoteRIVN - Free Report) earns a #3 (Hold) right now and its Most Accurate Estimate sits at -$0.57 a share, just 22 days from its upcoming earnings release on October 29, 2026.

RIVN has an Earnings ESP figure of +15.43%, which, as explained above, is calculated by taking the percentage difference between the -$0.57 Most Accurate Estimate and the Zacks Consensus Estimate of -$0.67. Rivian Automotive is one of a large database 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.

RIVN is just one of a large group of Auto, Tires and Trucks stocks with a positive ESP figure. Allison Transmission (ALSN Quick QuoteALSN - Free Report) is another qualifying stock you may want to consider.

Allison Transmission is a Zacks Rank #1 (Strong Buy) stock, and is getting ready to report earnings on November 4, 2026. ALSN's Most Accurate Estimate sits at $2.65 a share 28 days from its next earnings release.

Allison Transmission's Earnings ESP figure currently stands at +6.86% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $2.48.

RIVN and ALSN's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.

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 >>