How to Boost Your Portfolio with Top Consumer Staples Stocks Set to Beat Earnings

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.

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 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.

The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.

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 Ollie's Bargain Outlet?

The final step today is to look at a stock that meets our ESP qualifications. Ollie's Bargain Outlet (OLLI) earns a #2 (Buy) seven days from its next quarterly earnings release on August 28, 2025, and its Most Accurate Estimate comes in at $0.93 a share.

OLLI has an Earnings ESP figure of +1.72%, which, as explained above, is calculated by taking the percentage difference between the $0.93 Most Accurate Estimate and the Zacks Consensus Estimate of $0.91. Ollie's Bargain Outlet 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.

OLLI is one of just a large database of Consumer Staples stocks with positive ESPs. Another solid-looking stock is Altria (MO).

Slated to report earnings on October 30, 2025, Altria holds a #3 (Hold) ranking on the Zacks Rank, and its Most Accurate Estimate is $1.44 a share 70 days from its next quarterly update.

Altria's Earnings ESP figure currently stands at +1.01% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.42.

Because both stocks hold a positive Earnings ESP, OLLI and MO 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 >>

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

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