The Zacks Rank is comprised of four factors: Agreement, Magnitude, Upside and Surprise.

Upside is the percentage difference between the most accurate estimate and the consensus estimate.

By dividing the most accurate estimate (as calculated by Zacks) by the consensus estimate, you can see the difference between the two. A positive difference is obviously better than a negative one.

We've quantified the difference between the two estimates with our Earnings ESP (Expected Surprise Prediction). Simply put, stocks with a Zacks Rank of 1, 2, or 3, with a positive ESP were shown to positively surprise 70% of the time.

Factor #3: Upside - Learn more

The Zacks Rank is comprised of four factors: Agreement, Magnitude, Upside and Surprise.

The Surprise factor looks at the last few quarters of earnings surprises.

Companies with a positive earnings surprise are more likely to positively surprise in the future (or miss again if they recently missed).

For this reason, looking at a company's recent surprise history can be a great aid in forecasting the surprise likelihood of their next outing.

Factor #4: Surprise - Learn more