Earnings are a crucial factor in a company’s financial report, with EPS being a key figure that investors look at. A beat or miss on earnings can impact a stock’s performance significantly. Using tools like Zacks’ Earnings ESP filter can help identify stocks likely to exceed earnings expectations, leading to potential profits.

The Zacks Earnings ESP focuses on analyst revisions to predict earnings surprises. When combining a Zacks Rank #3 or better with a positive Earnings ESP, stocks have produced positive surprises 70% of the time, with average annual returns of 28.3%. Stocks with higher rankings like #1 (Strong Buy) are expected to outperform the market.

Allison Transmission (ALSN) is a stock with a #2 (Buy) ranking and an Earnings ESP of +1.27%. This figure is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate. Using tools like the Earnings ESP filter can help investors uncover stocks with the highest probability of surprising positively or negatively before their earnings report.

The demand for clean hydrogen energy is projected to grow significantly, with three companies poised to benefit from this trend. Zacks Investment Research is offering a Special Report on these emerging powerhouses in the hydrogen energy sector. Investors can access this report to learn more about these companies and potentially capitalize on the renewable energy wave.

Read more at NASDAQ MarketSite: How to Boost Your Portfolio with Top Auto, Tires and Trucks Stocks Set to Beat Earnings