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These 2 Computer and Technology Stocks Could Beat Earnings: Why They Should Be on Your Radar
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Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.
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 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.
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 ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Stocks with rankings of #2 (Buy) and #1 (Strong Buy), 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 Nvidia?
The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Nvidia (NVDA - Free Report) holds a #1 (Strong Buy) at the moment and its Most Accurate Estimate comes in at $2.58 a share 30 days away from its upcoming earnings release on November 18, 2026.
Nvidia's Earnings ESP sits at +3.46%, which, as explained above, is calculated by taking the percentage difference between the $2.58 Most Accurate Estimate and the Zacks Consensus Estimate of $2.49. NVDA 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.
NVDA is just one of a large group of Computer and Technology stocks with a positive ESP figure. TSMC (TSM - Free Report) is another qualifying stock you may want to consider.
TSMC, which is readying to report earnings on January 21, 2027, sits at a Zacks Rank #1 (Strong Buy) right now. Its Most Accurate Estimate is currently $5.15 a share, and TSM is 94 days out from its next earnings report.
TSMC's Earnings ESP figure currently stands at +3.12% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $5.00.
Because both stocks hold a positive Earnings ESP, NVDA and TSM 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 >>
View the Zacks #1 Rank List
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These 2 Computer and Technology Stocks Could Beat Earnings: Why They Should Be on Your Radar
Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.
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 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.
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 ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Stocks with rankings of #2 (Buy) and #1 (Strong Buy), 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 Nvidia?
The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Nvidia (NVDA - Free Report) holds a #1 (Strong Buy) at the moment and its Most Accurate Estimate comes in at $2.58 a share 30 days away from its upcoming earnings release on November 18, 2026.
Nvidia's Earnings ESP sits at +3.46%, which, as explained above, is calculated by taking the percentage difference between the $2.58 Most Accurate Estimate and the Zacks Consensus Estimate of $2.49. NVDA 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.
NVDA is just one of a large group of Computer and Technology stocks with a positive ESP figure. TSMC (TSM - Free Report) is another qualifying stock you may want to consider.
TSMC, which is readying to report earnings on January 21, 2027, sits at a Zacks Rank #1 (Strong Buy) right now. Its Most Accurate Estimate is currently $5.15 a share, and TSM is 94 days out from its next earnings report.
TSMC's Earnings ESP figure currently stands at +3.12% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $5.00.
Because both stocks hold a positive Earnings ESP, NVDA and TSM 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 >>