How to Boost Your Portfolio with Top Finance Stocks Set to Beat Earnings

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.

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.

Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.

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.

When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% 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 Blackstone Inc.?

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. Blackstone Inc. (BX) earns a #3 (Hold) right now and its Most Accurate Estimate sits at $1.42 a share, just 30 days from its upcoming earnings release on April 16, 2026.

By taking the percentage difference between the $1.42 Most Accurate Estimate and the $1.39 Zacks Consensus Estimate, Blackstone Inc. has an Earnings ESP of +2.79%. Investors should also know that BX 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.

BX is part of a big group of Finance stocks that boast a positive ESP, and investors may want to take a look at Bank of America (BAC) as well.

Slated to report earnings on April 15, 2026, Bank of America holds a #3 (Hold) ranking on the Zacks Rank, and its Most Accurate Estimate is $1.00 a share 29 days from its next quarterly update.

Bank of America's Earnings ESP figure currently stands at +1.01% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.99.

Because both stocks hold a positive Earnings ESP, BX and BAC 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 >>

Should You Invest in Blackstone Inc. (BX)?

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

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