How to Find Strong Auto, Tires and Trucks Stocks Slated for Positive Earnings Surprises

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.

The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.

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.

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.

Bringing together a positive earnings ESP alongside a Zacks Rank #3 (Hold) or better has helped stocks report a positive earnings surprise 70% of the time. Furthermore, by using these parameters, investors have seen 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 General Motors?

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. General Motors (GM) earns a #1 (Strong Buy) right now and its Most Accurate Estimate sits at $2.54 a share, just 18 days from its upcoming earnings release on January 27, 2026.

By taking the percentage difference between the $2.54 Most Accurate Estimate and the $2.21 Zacks Consensus Estimate, General Motors has an Earnings ESP of +14.81%. Investors should also know that GM is one of a large group 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.

GM is just one of a large group of Auto, Tires and Trucks stocks with a positive ESP figure. LCI (LCII) is another qualifying stock you may want to consider.

Slated to report earnings on February 10, 2026, LCI holds a #3 (Hold) ranking on the Zacks Rank, and its Most Accurate Estimate is $0.76 a share 32 days from its next quarterly update.

LCI's Earnings ESP figure currently stands at +10.15% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.69.

GM and LCII'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 >>

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

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