Why They Should Be on Your Radar

Earnings are arguably the most important single number on a company’s quarterly financial report. Wall Street clearly dives into all of the other metrics and management’s input, but the EPS figure helps cut through all the noise.

We 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.

The 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.

The final step today is to look at a stock that meets our ESP qualifications. Western Digital (WDC) earns a Zacks Rank #3 30 days from its next quarterly earnings release on October 23, 2025, and its Most Accurate Estimate comes in at $1.62 a share.

WDC has an Earnings ESP figure of +3.02%, which, as explained above, is calculated by taking the percentage difference between the $1.62 Most Accurate Estimate and the Zacks Consensus Estimate of $1.57.

WDC 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 Seagate (STX) as well.

Seagate, which is readying to report earnings on October 28, 2025, sits at a Zacks Rank #3 (Hold) right now. Its Most Accurate Estimate is currently $2.45 a share, and STX is 35 days out from its next earnings report.

For Seagate, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $2.34 is +4.59%.

WDC and STX’s 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 >>

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Western Digital Corporation (WDC) : Free Stock Analysis Report