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.
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. 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.
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. Magna (MGA) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $1.26 a share, just eight days from its upcoming earnings release on October 31, 2025.
By taking the percentage difference between the $1.26 Most Accurate Estimate and the $1.24 Zacks Consensus Estimate, Magna has an Earnings ESP of +1.34%.
MGA is just one of a large group of Auto-Tires-Trucks stocks with a positive ESP figure. General Motors (GM) is another qualifying stock you may want to consider.
Slated to report earnings on January 27, 2026, General Motors holds a #2 (Buy) ranking on the Zacks Rank, and its Most Accurate Estimate is $2.06 a share 96 days from its next quarterly update.
For General Motors, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.99 is +3.34%.
MGA and GM’s positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
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 >>
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