The article explains how to identify stocks poised for positive earnings surprises using the Zacks Earnings ESP (Expected Surprise Prediction) tool, which compares the most recent analyst estimates against consensus estimates. When combined with a Zacks Rank #3 or better, stocks with positive ESP have historically produced positive surprises 70% of the time with 28.3% average annual returns. Two finance stocks highlighted as examples are Healthpeak (DOC) and Victory Capital Holdings (VCTR), both with positive ESP figures ahead of their November earnings reports.

Zacks highlights the Earnings ESP (Expected Surprise Prediction) system for identifying stocks likely to beat quarterly earnings expectations. The article examines two finance stocks with positive ESP figures: Victory Capital Holdings (VCTR) with a +0.97% ESP and Zacks Rank #3 (Hold), and HCI Group (HCI) with a +35.40% ESP and Zacks Rank #1 (Strong Buy), both reporting earnings on November 5, 2026.

Victory Capital Holdings (VCTR), an investment management firm, has demonstrated a strong earnings-beat streak with an average surprise of 16.20% over the last two quarters. The company's positive Earnings ESP of +0.97% combined with its Zacks Rank #3 (Hold) suggests a high probability of another earnings beat, with historical data showing stocks with this combination beat consensus estimates nearly 70% of the time.

Victory Capital Holdings (VCTR) is drawing attention from options traders due to high implied volatility on its October 2026 $35 put options, suggesting market expectations for significant price movement. Despite analyst sentiment remaining neutral with a Zacks Rank #3 (Hold) rating, recent analyst activity shows a slight positive trend with earnings estimates revised upward over the past 60 days.

With the Federal Reserve expected to maintain higher interest rates for longer, dividend-growth stocks present an attractive alternative to pure growth stocks. These stocks offer steady income, lower volatility, and long-term return potential. Three stocks meeting strict dividend-growth criteria are highlighted: EnerSys (ENS), Cheesecake Factory (CAKE), and Victory Capital Holdings (VCTR), all showing positive revenue and earnings growth alongside rising dividend payouts.

SEI Investments (SEIC) reached a new 52-week high of $112.15, driven by 14% revenue growth in H1 2026, expanding client assets to $2.1 trillion, and strong technology platform demand. However, the stock trades at a premium P/E of 16.82x versus the industry average of 14.18x, and elevated investment spending could pressure margins if growth slows. The company maintains a Zacks Rank #3 (Hold) rating.

Three asset management companies—Invesco, Victory Capital, and SEI Investments—hit 52-week highs as the industry benefits from strong asset flows, consolidation activity, and product innovation. Invesco is expanding its product pipeline and improving operational efficiency. Victory Capital's $7 billion acquisition of First Eagle is expected to significantly boost scale and earnings. SEI Investments is growing through ETF expansion, private markets partnerships, and AI-enabled services.

Victory Capital Holdings (VCTR) has surged 23.8% over the past month and hit a new 52-week high of $123.24, driven by consistent earnings beats and strong year-to-date gains of 91.2%. The stock carries a Zacks Rank #2 (Buy) with a VGM Score of B, though it trades at a premium valuation of 15.3X current fiscal year EPS versus the industry average of 12.4X. Analysts suggest the stock could still have room to run despite the recent rally.

Victory Capital's Chief Legal Officer Nina Gupta sold 9,732 shares worth $973,000 on August 5 due to automatic tax withholding from vesting performance-based restricted stock. The shares vested after the stock hit a preset price target, reflecting strong company execution. Victory Capital has demonstrated robust financial performance with 24% revenue growth, $346 billion in client assets, and management pursuing acquisitions to reach a $1 trillion asset goal.

Victory Capital Holdings executive Thomas Michael Sipp sold 18,177 shares worth $1.8 million on August 5 to cover tax liabilities from vesting performance-based restricted stock. The sale is non-discretionary and reflects strong company performance, with Victory Capital posting record quarterly results including 24% revenue growth and $4.2 billion in net long-term inflows. The stock has surged over 50% in the past year and cleared the first of four price hurdles tied to executive compensation.

Major M&A activity continues with Estée Lauder in merger discussions with Puig ($40B), KKR acquiring Nothing Bundt Cakes ($2B+), and Amazon acquiring robotics firm Fauna. Other significant deals include Corebridge-Equitable Holdings merger ($22B), Merck's acquisition of Terns Pharmaceuticals ($6.7B), and Abbott closing its Exact Sciences deal ($21B). Several companies filed for bankruptcy including 23andMe and Applebee's franchisee NRPF.

The article identifies four stocks that combine strong shareholder returns through dividends and buybacks with solid fundamentals: Federated Hermes (8.9% shareholder yield), Janus Henderson (6.5% shareholder yield), Cass Information Systems (7.6% shareholder yield), and Victory Capital (7.7% shareholder yield). All four companies demonstrate sustainable capital returns backed by strong free cash flow, healthy balance sheets, and reasonable valuations, making them suitable for income-focused investors seeking disciplined capital allocation.