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.

With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure. The system also utilizes our core Zacks Rank to provide a stronger system for identifying stocks that might beat their next quarterly earnings estimate and possibly see the stock price climb.

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 Ulta Beauty?

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. Ulta Beauty (ULTA Quick QuoteULTA - Free Report) earns a #3 (Hold) right now and its Most Accurate Estimate sits at $5.70 a share, just 30 days from its upcoming earnings release on December 3, 2026.

ULTA has an Earnings ESP figure of +1.84%, which, as explained above, is calculated by taking the percentage difference between the $5.70 Most Accurate Estimate and the Zacks Consensus Estimate of $5.6. Ulta Beauty 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.

ULTA is one of just a large database of Retail and Wholesale stocks with positive ESPs. Another solid-looking stock is Starbucks (SBUX Quick QuoteSBUX - Free Report) .

Slated to report earnings on January 27, 2027, Starbucks holds a #3 (Hold) ranking on the Zacks Rank, and its Most Accurate Estimate is $0.76 a share 85 days from its next quarterly update.

Starbucks' Earnings ESP figure currently stands at +1.10% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.75.

Because both stocks hold a positive Earnings ESP, ULTA and SBUX 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 >>