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.

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.

2 Stocks to Add to Your Watchlist

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. 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 final step today is to look at a stock that meets our ESP qualifications. Baker Hughes (BKR) earns a Zacks Rank #3 29 days from its next quarterly earnings release on April 22, 2025, and its Most Accurate Estimate comes in at $0.49 a share.

BKR has an Earnings ESP figure of 0.83%, which, as explained above, is calculated by taking the percentage difference between the $0.49 Most Accurate Estimate and the Zacks Consensus Estimate of $0.48.

BKR is just one of a large group of Oils-Energy stocks with a positive ESP figure. NextDecade (NEXT) is another qualifying stock you may want to consider.

NextDecade, which is readying to report earnings on May 8, 2025, sits at a Zacks Rank #2 (Buy) right now. It's Most Accurate Estimate is currently -$0.06 a share, and NEXT is 45 days out from its next earnings report.

The Zacks Consensus Estimate for NextDecade is -$0.25, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 76%.

BKR and NEXT's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.

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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Baker Hughes Company (BKR) : Free Stock Analysis Report

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

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