These 2 Computer and Technology Stocks Could Beat Earnings: Why They Should Be on Your Radar

Zacks says Monolithic Power (MPWR) and Oracle (ORCL) could beat their upcoming earnings, citing positive Earnings ESPs: +4.06% for MPWR ($7.86 most accurate estimate vs. $7.55 consensus) and +0.15% for ORCL ($1.89 vs. $1.88). Both carry Zacks Rank #3 (Hold); reports are scheduled for October 29, 2026, for MPWR and December 9, 2026, for Oracle. The article presents potential surprises, not reported results, and cites a Zacks backtest in which stocks with Rank #3 or better and positive ESP beat estimates 70% of the time.

Analysis

The signal is more useful as a prompt to check revision breadth than as an earnings thesis. A positive estimate gap can reflect one fresh analyst update against a largely unchanged consensus; the article gives no revision count, dispersion, estimate history, or evidence that the revisions incorporate new company information. Its backtest statistic is not a forecast of either stock’s event return and may not capture selection effects, transaction costs, or the downside when a beat is already priced.

MPWR merits the nearer-term watch because power-management demand could benefit if AI/server deployments and content per system are tracking above expectations. But the article supplies no end-market data, so a beat without stronger forward demand or margin commentary may not sustain the stock. Conversely, evidence of weaker orders or customer digestion would challenge that hypothesis and could pressure other power-semiconductor names as well.

For ORCL, the estimate gap is too small to treat as meaningful on its own. The more consequential earnings questions are cloud growth, capacity availability, and whether infrastructure investment converts into revenue and acceptable margins; capex commentary could matter more than a narrow EPS beat. Near term, both setups face event-gap risk. Over 1–3 months, monitor estimate revisions and positioning; over 6–18 months, the relevant differentiator is whether AI-related spending produces durable, profitable demand rather than merely higher investment. No trade is justified from this article alone.

Key Decisions for Investors

• Do not initiate either position solely on the ESP screen. Before the October 29 MPWR report, verify how many analysts revised estimates, revision direction and breadth, estimate dispersion, and whether the implied move is already embedded in the options market.
• Keep MPWR on an event watchlist, not an unconditional long. A post-report long is more attractive if guidance and order commentary corroborate stronger server/power demand; falsify the thesis on weaker demand indicators or deteriorating forward margin commentary.
• Treat ORCL’s positive estimate gap as negligible absent broader upward revisions. Ahead of its December report, track cloud growth, capacity constraints, capex, and operating-margin commentary; a beat paired with weaker conversion of investment into revenue would not validate a bullish read-through.
• If taking pre-earnings exposure, size for a possible gap against the position and compare the option-implied move with historical event moves first. The supplied data do not support a price target or a directional options recommendation.