Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter. The earnings figure itself is key, 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 even higher. 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 final step today is to look at a stock that meets our ESP qualifications. Urban Outfitters (URBN) earns a Zacks Rank #2 29 days from its next quarterly earnings release on May 20, 2025, and its Most Accurate Estimate comes in at $0.83 a share. URBN has an Earnings ESP figure of 2.05%, which, as explained above, is calculated by taking the percentage difference between the $0.83 Most Accurate Estimate and the Zacks Consensus Estimate of $0.81. URBN is part of a big group of Retail-Wholesale stocks that boast a positive ESP, and investors may want to take a look at Dick's Sporting Goods (DKS) as well. Dick's Sporting Goods, which is readying to report earnings on June 4, 2025, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $3.22 a share, and DKS is 44 days out from its next earnings report. Dick's Sporting Goods' Earnings ESP figure currently stands at 0.01% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $3.21. URBN and DKS' positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon. 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 >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report DICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Terms and Privacy Policy Your privacy choices

How to Boost Your Portfolio with Top Retail-Wholesale Stocks Set to Beat Earnings

This article discusses how investors can use earnings surprises to boost their portfolio by focusing on Retail-Wholesale stocks with positive Expected Surprise Predictions (ESP). Two companies highlighted are Urban Outfitters (URBN) and Dick's Sporting Goods (DKS). URBN is expected to report earnings on May 20, 2025, with a Zacks Rank of 2, while DKS is set to report on June 4, 2025, with a Zacks Rank of 3. Both companies have positive ESP figures, indicating potential earnings surprises.