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How to Boost Your Portfolio with Top Computer and Technology Stocks Set to Beat Earnings

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.

Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.

2 Stocks to Add to Your Watchlist

The Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information. With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure.

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. Skyworks Solutions (SWKS) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $3.04 a share, just five days from its upcoming earnings release on February 6, 2023.

By taking the percentage difference between the $3.04 Most Accurate Estimate and the $2.65 Zacks Consensus Estimate, Skyworks Solutions has an Earnings ESP of 14.72%.

SWKS is part of a big group of Computer and Technology stocks that boast a positive ESP, and investors may want to take a look at Shopify (SHOP) as well.

Shopify, which is readying to report earnings on February 15, 2023, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $0 a share, and SHOP is 14 days out from its next earnings report.

Shopify's Earnings ESP figure currently stands at 100% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.

Because both stocks hold a positive Earnings ESP, SWKS and SHOP 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 >>

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

Skyworks Solutions, Inc. (SWKS) : Free Stock Analysis Report

Shopify Inc. (SHOP) : Free Stock Analysis Report

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Zacks Investment Research