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

Zacks' Earnings ESP (Expected Surprise Prediction) system, which forecasts earnings surprises by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, has historically resulted in positive earnings surprises 70% of the time and 28.3% average annual returns for stocks with a Zacks Rank #3 or better. Applying this methodology, Garmin (GRMN) and Nvidia (NVDA), both rated Zacks Rank #2 (Buy), show positive ESPs of +5.56% and +1.33% respectively, suggesting potential for positive earnings surprises in their upcoming reports.

Analysis

Zacks' Earnings ESP (Expected Surprise Prediction) methodology, which combines a positive ESP with a Zacks Rank #3 (Hold) or better, has historically demonstrated significant predictive power. A 10-year backtest indicates this strategy has led to positive earnings surprises 70% of the time, yielding average annual returns of 28.3% for qualifying stocks. This framework aims to identify companies likely to exceed bottom-line expectations by comparing the Most Accurate Estimate to the Zacks Consensus Estimate.

Garmin (GRMN), a Computer and Technology sector company, currently holds a Zacks Rank #2 (Buy) and exhibits a positive Earnings ESP of +5.56%. This is derived from a Most Accurate Estimate of $2.09 per share against a Zacks Consensus Estimate of $1.98, ahead of its October 29, 2025, earnings release. Such a strong positive ESP, coupled with its 'Buy' rating, suggests a high probability of an earnings beat.

Similarly, Nvidia (NVDA), another key player in the Computer and Technology sector, also carries a Zacks Rank #2 (Buy) and a positive Earnings ESP of +1.33%. This figure is based on a Most Accurate Estimate of $1.25 per share versus a Zacks Consensus Estimate of $1.23, with its earnings scheduled for November 19, 2025. Both GRMN and NVDA's positive ESP metrics, combined with their strong Zacks Ranks, signal potential for favorable earnings surprises.

The consistent application of this quantitative model across these two prominent technology names, supported by their respective 'Buy' ratings, points to an optimistic outlook for their upcoming quarterly reports. The overall sentiment surrounding these indicators is strongly positive, suggesting potential upside for investors.

Key Decisions for Investors

• Investors should closely monitor Garmin (GRMN) and Nvidia (NVDA) for potential pre-earnings positioning, given their positive Earnings ESPs and Zacks Rank #2 (Buy) ratings.
• Consider the historical efficacy of the Zacks Earnings ESP methodology, which has shown a 70% success rate in predicting positive earnings surprises and 28.3% average annual returns, when evaluating these specific technology sector opportunities.
• Evaluate current portfolio allocations to technology, especially in light of these specific positive signals for GRMN and NVDA, ahead of their respective earnings dates in late 2025.