Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.
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.
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.
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 Newmont Corporation?
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. Newmont Corporation (NEM) earns a #2 (Buy) right now and its Most Accurate Estimate sits at $1.29 a share, just six days from its upcoming earnings release on October 23, 2025.
NEM has an Earnings ESP figure of +1.32%, which, as explained above, is calculated by taking the percentage difference between the $1.29 Most Accurate Estimate and the Zacks Consensus Estimate of $1.27. Newmont Corporation 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.
NEM is just one of a large group of Basic Materials stocks with a positive ESP figure. SSR Mining (SSRM) is another qualifying stock you may want to consider.
SSR Mining, which is readying to report earnings on November 4, 2025, sits at a Zacks Rank #2 (Buy) right now. Its Most Accurate Estimate is currently $0.46 a share, and SSRM is 18 days out from its next earnings report.
The Zacks Consensus Estimate for SSR Mining is $0.31, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +46.81%.
Because both stocks hold a positive Earnings ESP, NEM and SSRM 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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Newmont Corporation (NEM): Free Stock Analysis Report Silver Standard Resources Inc. (SSRM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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