These 2 Business Services Stocks Could Beat Earnings: Why They Should Be on Your Radar

Zacks highlights its proprietary Earnings ESP (Expected Surprise Prediction) tool, which identifies stocks likely to beat quarterly earnings by comparing the Most Accurate Estimate to the Consensus Estimate. Historically, a positive ESP combined with a Zacks Rank #3 (Hold) or stronger has predicted positive bottom-line surprises 70% of the time, yielding average annual returns of 28% over a decade. The tool currently indicates potential positive earnings surprises for Visa (V), with a +0.49% ESP and #2 (Buy) rank, and DLocal (DLO), with a +5.00% ESP and #3 (Hold) rank, ahead of their respective July and August 2025 earnings reports.

Analysis

The analysis centers on the Zacks Earnings Expected Surprise Prediction (ESP), a quantitative tool designed to forecast earnings beats by comparing the most recent analyst estimates against the broader consensus. The model's historical performance is notable, with a reported 70% success rate in predicting positive surprises and generating 28% average annual returns in a decade-long backtest when combined with a Zacks Rank of #3 (Hold) or higher. Currently, the tool identifies two opportunities in the Business Services sector. Visa (V) is positioned favorably with a Zacks Rank of #2 (Buy) and a positive ESP of +0.49%, derived from a Most Accurate Estimate of $2.87 versus a consensus of $2.86 just five days ahead of its earnings release. Concurrently, DLocal (DLO) displays a significantly stronger ESP of +5.00% ($0.14 Most Accurate Estimate vs. $0.13 consensus), though it carries a more neutral Zacks Rank of #3 (Hold) with 20 days until its report. The positive ESP for both firms, according to the methodology, signals a heightened probability that they will exceed their respective quarterly earnings forecasts.

Key Decisions for Investors

• Investors could consider using a positive Earnings ESP as a key data point for pre-earnings positioning, particularly for stocks with a Zacks Rank of #3 or better, given the model's strong historical performance metrics.
• For Visa (V), the combination of a #2 (Buy) rank and a positive ESP, though narrow, suggests a higher likelihood of an earnings beat, presenting a potential near-term bullish catalyst.
• The substantial +5.00% ESP for DLocal (DLO) indicates strong upward analyst revisions, but its neutral #3 (Hold) rank suggests this optimism should be balanced against a broader in-line market expectation for the stock.
• While the ESP is a compelling indicator, it should be used as a supplementary tool within a broader fundamental analysis framework rather than as a standalone basis for an investment decision.