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 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 ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.

The final step today is to look at a stock that meets our ESP qualifications. Caesars Entertainment (CZR) earns a Zacks Rank #3 five days from its next quarterly earnings release on April 29, 2025, and its Most Accurate Estimate comes in at -$0.13 a share.

CZR has an Earnings ESP figure of 27.9%, which, as explained above, is calculated by taking the percentage difference between the -$0.13 Most Accurate Estimate and the Zacks Consensus Estimate of -$0.18.

CZR is one of just a large database of Consumer Discretionary stocks with positive ESPs. Another solid-looking stock is Malibu Boats (MBUU).

Slated to report earnings on May 1, 2025, Malibu Boats holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $0.74 a share seven days from its next quarterly update.

For Malibu Boats, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.67 is 10.04%.

Because both stocks hold a positive Earnings ESP, CZR and MBUU 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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Caesars Entertainment, Inc. (CZR) : Free Stock Analysis Report

Malibu Boats, Inc. (MBUU) : Free Stock Analysis Report

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

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