Why Investors Need to Take Advantage of These 2 Consumer Staples Stocks Now

Zacks highlights its Earnings ESP (Expected Surprise Prediction) methodology, which forecasts earnings surprises by comparing the Most Accurate Estimate to the Zacks Consensus Estimate. This tool, when combined with a Zacks Rank #3 or better and a positive ESP, has historically predicted positive surprises 70% of the time and delivered an average annual return of 28.3% over a decade. The analysis identifies Ollie's Bargain Outlet (OLLI) with a +6.54% ESP and Lamb Weston (LW) with a +1.88% ESP as consumer staples stocks with a high probability of exceeding analyst expectations in their upcoming December 2025 earnings reports.

Analysis

Zacks' Earnings ESP (Expected Surprise Prediction) methodology identifies potential earnings beats by comparing the Most Accurate Estimate to the Zacks Consensus Estimate. This proprietary tool, when combined with a Zacks Rank of #3 (Hold) or better and a positive ESP, has historically predicted positive earnings surprises 70% of the time. A 10-year backtest demonstrates an impressive average annual return of 28.3% for this strategy.

Ollie's Bargain Outlet (OLLI), a consumer staples stock, currently holds a Zacks Rank #2 (Buy) and a positive Earnings ESP of +6.54%. This is derived from a Most Accurate Estimate of $0.76 per share against a Zacks Consensus Estimate of $0.71 for its upcoming December 9, 2025 earnings release. The strong positive ESP suggests a high probability of OLLI exceeding analyst expectations.

Similarly, Lamb Weston (LW), another consumer staples company, is rated Zacks Rank #1 (Strong Buy) and exhibits a positive Earnings ESP of +1.88%. This figure results from a Most Accurate Estimate of $0.69 per share versus a Zacks Consensus Estimate of $0.68 for its December 18, 2025 earnings report. LW's higher Zacks Rank and positive ESP further reinforce its potential for an earnings beat.

Key Decisions for Investors

• Investors should closely monitor Ollie's Bargain Outlet (OLLI) and Lamb Weston (LW) ahead of their December 2025 earnings reports, given their positive Earnings ESP figures and strong Zacks Ranks, indicating a high probability of exceeding analyst expectations.
• The Zacks Earnings ESP methodology, with its historical 70% accuracy for positive surprises and 28.3% average annual returns, presents a compelling framework for identifying potential short-term trading opportunities around earnings announcements.
• Consider evaluating other consumer staples stocks with similar positive ESP and strong Zacks Ranks, leveraging the described methodology to identify further potential earnings-driven upside.