If you are looking for a stock with an excellent history of beating earnings estimates and it is in an excellent place to maintain the movement in the next quarterly report of its, you need to think about Advanced Micro Devices (AMD). This business, which happens to be in the Zacks Electronics – Semiconductors industry, shows potential for another earnings beat.
This particular chipmaker has an established history of topping earnings estimates, particularly when looking at the preceding 2 reports. The company boasts an average surprise for the past two quarters of 13.19 %.
For likely the most recent quarter, Advanced Micro was likely to submit earnings of $0.36 per share, but it reported $0.41 per share instead, representing a surprise of 13.89 %. For the earlier quarter, the consensus estimate was $0.16 per AMD share, while it actually produced $0.18 per share, a surprise of 12.50 %.
Price as well as EPS Surprise
Thanks in part to this particular past, there has been a favorable change in earnings estimates for Advanced Micro lately. In reality, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is good, which is a great sign of an earnings beat, especially when coupled with its strong Zacks Rank.
Our research shows that stocks with the mix of an optimistic Earnings ESP & a Zacks Rank #3 (Hold) or perhaps better produce a good surprise nearly seventy % of the moment. Quite simply, in case you have ten stocks with this particular blend, the number of stocks that match the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares probably 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 actually connected to change. The concept here’s that analysts revising the estimates of theirs right before an earnings release have the latest information, which may potentially be a little more precise compared to what they and some bringing about the consensus had predicted previously.
Advanced Micro has an Earnings ESP of +3.23 % at the second, suggesting that analysts have grown bullish on its near-term earnings potential. Once you combine this positive Earnings ESP with the stock’s Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner.
When the Earnings ESP comes up unfavorable, investors should be aware this will decrease the predictive power of the metric. Nevertheless, a negative value just isn’t indicative of a stock’s earnings miss.
Many companies wind up beating the consensus EPS appraisal, but that might not be the lone foundation for their stocks moving higher. On the other hand, several stocks might keep their ground even if they end up missing the consensus estimate.
Due to this, it’s seriously vital that you look at a company’s Earnings ESP in front of its quarterly release to raise the likelihood of success. Make sure to use our Earnings ESP Filter to uncover the best stocks to buy or sell before they have reported.