Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.\n\nWe 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.\n\nThe 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.\n\nNow that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. Macy's (M) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $0.20 a share, just 20 days from its upcoming earnings release on August 20, 2025.\n\nMacy's' Earnings ESP sits at +8.7%, which, as explained above, is calculated by taking the percentage difference between the $0.20 Most Accurate Estimate and the Zacks Consensus Estimate of $0.18.\n\nM is one of just a large database of Retail-Wholesale stocks with positive ESPs. Another solid-looking stock is Burlington Stores (BURL).\n\nSlated to report earnings on September 4, 2025, Burlington Stores holds a #3 (Hold) ranking on the Zacks Rank, and its Most Accurate Estimate is $1.36 a share 35 days from its next quarterly update.\n\nFor Burlington Stores, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.25 is +8.55%.\n\nM and BURL's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.\n\nUse 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 >>\n\nWant 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\n\nMacy's, Inc. (M) : Free Stock Analysis Report\nBurlington Stores, Inc. (BURL) : Free Stock Analysis Report\nThis article originally published on Zacks Investment Research (zacks.com).

How to Find Strong Retail-Wholesale Stocks Slated for Positive Earnings Surprises

The article discusses how investors can use the Zacks Earnings ESP (Expected Surprise Prediction) to identify retail-wholesale stocks likely to beat analyst earnings expectations. It highlights Macy's (M) and Burlington Stores (BURL) as examples, noting their positive ESPs and upcoming earnings reports in August and September 2025.