The article highlights how investors can use the Zacks Earnings ESP (Expected Surprise Prediction) filter to identify stocks likely to beat earnings expectations. Two tech stocks are featured: Yelp with a +12.50% ESP and Hold rating, and Shopify with a +10.11% ESP and Buy rating. Both are positioned to potentially surprise positively on their upcoming earnings reports in early November 2026.

Yelp (YELP) demonstrates a strong history of beating earnings estimates, with an average beat of 66.11% over the last two quarters. The company's positive Earnings ESP of +12.50% combined with its Zacks Rank #3 suggests another earnings beat is likely, as stocks with this combination historically beat consensus estimates nearly 70% of the time.

Investment manager Thomas W. Smith reduced his position in Yelp by 96,280 shares during the fourth quarter, with the stake's value declining by $4.09 million. The remaining position now represents only 0.22% of the fund's assets under management. Yelp's stock has underperformed significantly, down 45.7% over the past year.

Yelp CEO Jeremy Stoppelman sold 66,200 shares worth $1.7 million in early February 2026 under a pre-established trading plan. While the sale itself is not alarming, investors should exercise caution due to Yelp's flat 2026 revenue outlook despite record 2025 results, declining restaurant/retail segment revenue, and growing threats from AI-powered local business discovery tools.

Yelp's Chief Operating Officer, Joseph Nachman, sold 7,000 shares worth $222,885 through a pre-arranged trading plan, representing 3.09% of his direct holdings. The company has experienced slower revenue growth and stock underperformance in the current year.

NZ Marketing, a Los Angeles digital marketing agency, announced the expansion of its AI-powered advertising and SEO solutions for small businesses, offering advanced tools to help local companies capture leads and achieve growth through its NZLeads.com platform.

Digital marketing agency VIIRL Marketing achieved significant growth, ranking #1,442 on the Inc. 5000 list with a 301% growth rate over three years, serving over 600 client locations and focusing on service-based business marketing.

Yelp reported strong Q4 2024 results, with its Services segment driving 11% year-over-year growth and overall revenue of $361.95 million. However, the Restaurants, Retail, and Other (RR&O) categories faced challenges, leading to a 3% decline in advertising revenue. Yelp's focus on high-margin opportunities, particularly within services advertising and AI-driven enhancements, is key for sustainable growth.

Yelp has been upgraded to a Zacks Rank #1 (Strong Buy) due to rising earnings estimates, indicating an improvement in the company's underlying business. This positive trend in earnings estimates is expected to have a favorable impact on the stock price.

Yelp Inc's COO Joseph Nachman sold 7,000 shares, continuing a trend of insider selling at the company over the past year. The transaction suggests a neutral sentiment, as the sale is part of a broader pattern and does not necessarily indicate a negative outlook.

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YELP's first-quarter results reflect strength in Advertising and Home Services, partly offset by macroeconomic impacts on Restaurant, Retail and Other Categories.