Why Investors Need to Take Advantage of These 2 Finance Stocks Now

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, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.

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.

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 Banco Macro?

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. Banco Macro (BMA) earns a #2 (Buy) right now and its Most Accurate Estimate sits at $2.01 a share, just 28 days from its upcoming earnings release on August 26, 2026.

Banco Macro's Earnings ESP sits at +26.81%, which, as explained above, is calculated by taking the percentage difference between the $2.01 Most Accurate Estimate and the Zacks Consensus Estimate of $1.59. BMA is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

BMA is one of just a large database of Finance stocks with positive ESPs. Another solid-looking stock is Realty Income Corp. (O).

Realty Income Corp., which is readying to report earnings on August 5, 2026, sits at a Zacks Rank #2 (Buy) right now. Its Most Accurate Estimate is currently $1.10 a share, and O is seven days out from its next earnings report.

For Realty Income Corp., the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.09 is +0.92%.

BMA and O'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 >>

Should You Invest in Macro Bank Inc. (BMA)?

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

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