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.

The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.

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.

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 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 Agilent Technologies?

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. Agilent Technologies (A) earns a #3 (Hold) right now and its Most Accurate Estimate sits at $1.49 a share, just 30 days from its upcoming earnings release on August 26, 2026.

A has an Earnings ESP figure of +1.02%, which, as explained above, is calculated by taking the percentage difference between the $1.49 Most Accurate Estimate and the Zacks Consensus Estimate of $1.48. Agilent Technologies 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.

A is one of just a large database of Medical stocks with positive ESPs. Another solid-looking stock is Regeneron (REGN).

Slated to report earnings on July 30, 2026, Regeneron holds a #3 (Hold) ranking on the Zacks Rank, and its Most Accurate Estimate is $10.13 a share three days from its next quarterly update.

The Zacks Consensus Estimate for Regeneron is $10.00, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +1.22%.

Because both stocks hold a positive Earnings ESP, A and REGN 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 >>

Should You Invest in Agilent Technologies, Inc. (A)?

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Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)

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Agilent Technologies, Inc. (A): Free Stock Analysis Report

 

Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report

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

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