In case you are searching for a stock that has a solid history of beating earnings estimates and it is in an excellent spot to manage the trend in its next quarterly report, you should think about Advanced Micro Devices (AMD). This business, and that is in the Zacks Electronics – Semiconductors industry, shows potential for another earnings beat.
This chipmaker has an established history of topping earnings estimates, particularly when looking at the preceding 2 reports. The company boasts an average surprise in the past 2 quarters of 13.19 %.
For essentially the most recent quarter, Advanced Micro was likely to post earnings of $0.36 per share, but it reported $0.41 per share instead, representing a surprise of 13.89 %. For the previous quarter, the consensus estimate was $0.16 per AMD share, while it really produced $0.18 per share, a surprise of 12.50 %.
Price and EPS Surprise
Thanks in part to this particular past, there continues to be a favorable change of earnings estimates for Advanced Micro lately. In reality, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is actually good, which is actually an excellent warning of an earnings beat, especially when matched with its solid Zacks Rank.
Our research shows that stocks with the blend of a positive Earnings ESP and a Zacks Rank #3 (Hold) or even much better deliver a positive surprise nearly seventy % of the time. In other words, if you’ve 10 stocks with this particular combination, the number of stocks that beat the consensus estimate is usually as high as 7.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; probably the Most Accurate Estimate is actually a version of the Zacks Consensus whose description is related to change. The idea here is that analysts revising the estimates of theirs right before an earnings release have the most recent info, which may likely be a little more accurate compared to what they and some contributing to the consensus had predicted earlier.
Advanced Micro has an Earnings ESP of +3.23 % at the moment, hinting that analysts have grown bullish on the near term earnings potential of its. Once you combine this good Earnings ESP with the stock’s Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner.
Whenever the Earnings ESP comes up negative, investors must be aware this will decrease the predictive power of the metric. Nevertheless, a negative value is not signs of a stock’s earnings miss.
A lot of companies wind up beating the consensus EPS estimate, but that might not be the sole justification for their stocks moving higher. On the other hand, several stocks may keep the ground of theirs even in case they wind up missing the consensus estimate.
Because of this particular, it is seriously crucial that you examine a company’s Earnings ESP ahead of its quarterly release to raise the likelihood of success. Make sure you use our Earnings ESP Filter to uncover the very best stocks to buy as well as promote before they have reported.