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

Zacks' Earnings ESP model identifies stocks poised to exceed quarterly earnings expectations by comparing the "Most Accurate Estimate" to the "Zacks Consensus Estimate" alongside a Zacks Rank of #3 or better. This methodology boasts a 70% historical success rate for predicting positive earnings surprises, yielding an average 28.3% annual return over a 10-year backtest. Based on this, Confluent (CFLT) and Nice (NICE), both Zacks Rank #2 (Buy) computer and technology stocks with positive ESPs (+10.20% and +0.93% respectively), are highlighted as strong candidates for upcoming earnings beats, signaling potential upside for investors.

Analysis

Quantitative analysis based on the Zacks Earnings Expected Surprise Prediction (ESP) model has identified Confluent (CFLT) and Nice (NICE) as technology stocks with a high probability of exceeding their upcoming quarterly earnings estimates. The model, which has a 70% historical success rate in predicting positive surprises and has shown an average 28.3% annual return in a 10-year backtest, flags stocks with a positive ESP and a Zacks Rank of #3 (Hold) or better. Both CFLT and NICE hold a Zacks Rank #2 (Buy). Confluent exhibits a particularly strong signal with an Earnings ESP of +10.20%, derived from a Most Accurate Estimate of $0.09 per share versus a consensus of $0.08 ahead of its July 30, 2025 report. Nice also shows a positive signal with an ESP of +0.93%, based on a Most Accurate Estimate of $3.02 against a consensus of $2.99 for its August 21, 2025 report. These strong quantitative indicators suggest that recent analyst revisions are trending upwards, positioning both companies for a potential post-earnings stock price increase.

Key Decisions for Investors

• Investors may consider initiating or increasing positions in Confluent (CFLT) and Nice (NICE) ahead of their respective earnings announcements to capitalize on the high probability of a positive earnings surprise.
• Given its substantially higher Earnings ESP of +10.20%, Confluent presents a stronger quantitative case for a significant upside surprise compared to Nice's +0.93% ESP.
• This strategy is event-driven; therefore, positions should be monitored closely around the earnings release dates of July 30, 2025, for CFLT and August 21, 2025, for NICE, as the model's value is in capturing the market's immediate reaction.