Looking for Stocks with Positive Earnings Momentum? Check Out These 2 Computer and Technology Names

Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.

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 Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more 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.

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 Shopify?

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. Shopify (SHOP) holds a #1 (Strong Buy) at the moment and its Most Accurate Estimate comes in at $0.42 a share seven days away from its upcoming earnings release on August 5, 2026.

Shopify's Earnings ESP sits at +6.85%, which, as explained above, is calculated by taking the percentage difference between the $0.42 Most Accurate Estimate and the Zacks Consensus Estimate of $0.39. SHOP 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.

SHOP is just one of a large group of Computer and Technology stocks with a positive ESP figure. Amkor Technology (AMKR) is another qualifying stock you may want to consider.

Amkor Technology, which is readying to report earnings on October 26, 2026, sits at a Zacks Rank #2 (Buy) right now. Its Most Accurate Estimate is currently $0.77 a share, and AMKR is 89 days out from its next earnings report.

Amkor Technology's Earnings ESP figure currently stands at +16.08% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.66.

SHOP and AMKR'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 >>

Should You Invest in Shopify Inc. (SHOP)?

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This article originally published on Zacks Investment Research (zacks.com).

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