Why Investors Need to Take Advantage of These 2 Computer and Technology Stocks Now

The article introduces the Zacks Earnings ESP tool, which forecasts earnings surprises by comparing the Most Accurate Estimate against the Zacks Consensus Estimate. When combined with a Zacks Rank of #3 (Hold) or better, this methodology has historically predicted positive earnings surprises 70% of the time, achieving an average annual return of 28.3% over a 10-year backtest. Examples like Jabil (JBL) with a +5.94% ESP and The Trade Desk (TTD) with a +10.61% ESP, both Zacks Rank #3 stocks, illustrate the tool's utility in identifying companies likely to beat estimates, presenting potential pre-earnings trading opportunities.

Analysis

The provided research highlights a quantitative strategy for identifying potential earnings beats, centered on the Zacks Earnings ESP (Expected Surprise Prediction) tool. The methodology posits that companies with a positive ESP, when combined with a Zacks Rank of #3 (Hold) or better, have historically delivered a positive earnings surprise 70% of the time, citing a 10-year backtest that yielded an average annual return of 28.3%. Two specific technology stocks are presented as current examples of this signal. Jabil (JBL), rated #3 (Hold), shows a positive Earnings ESP of +5.94% ahead of its September 25, 2025 earnings report, based on its Most Accurate Estimate of $3.12 per share versus a consensus of $2.95. Similarly, The Trade Desk (TTD), also a #3 (Hold), has an even more pronounced ESP of +10.61% for its November 6, 2025 report, with its Most Accurate Estimate at $0.49 against a consensus of $0.44. These data points suggest that recent analyst revisions for both firms are trending more favorably than the broader consensus, indicating a statistical likelihood of them surpassing current earnings expectations.

Key Decisions for Investors

• Investors may consider tactical long positions or short-term call options on Jabil (JBL) to capitalize on a potential earnings beat, given its +5.94% ESP and imminent report date.
• For The Trade Desk (TTD), the stronger +10.61% ESP provides a bullish signal, suggesting investors could monitor the stock for an attractive entry point ahead of its November earnings event.
• While the positive ESP figures for both JBL and TTD are compelling indicators for an earnings surprise, their Zacks Rank of #3 (Hold) implies an expectation of in-line market performance, warranting further due diligence on underlying fundamentals beyond this specific quantitative signal.