If you are searching for a stock which has an excellent history of beating earnings estimates and is in a good place to manage the movement in its next quarterly report, you need to consider Advanced Micro Devices (AMD). This business, which happens to be in the Zacks Electronics – Semiconductors business, shows potential for another earnings beat.
This chipmaker has an established record 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 the most recent quarter, Advanced Micro was likely to publish earnings of $0.36 per share, but it reported $0.41 per share rather, representing a surprise of 13.89 %. For the previous quarter, the consensus estimation was $0.16 per AMD share, while it really produced $0.18 per share, a surprise of 12.50 %.
Price as well as EPS Surprise
Thanks in part to this history, there continues to be a favorable change of earnings estimates for Advanced Micro lately. In truth, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is good, which is actually an excellent sign of an earnings beat, mainly when combined with its strong Zacks Rank.
The investigation of ours shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or perhaps better produce a good surprise about 70 % of the moment. Quite simply, in case you have ten stocks with this particular blend, the amount of stocks that beat the consensus estimate might be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The concept here’s that analysts revising their estimates directly before an earnings release hold the latest info, which might potentially be more precise compared to what they and others leading to the consensus had predicted earlier.
Advanced Micro has an Earnings ESP of +3.23 % at the second, hinting that analysts have grown bullish on its near-term earnings possibilities. As soon as you combine this good Earnings ESP with the stock’s Zacks Rank #3 (Hold), it shows that another beat is probably nearby.
When the Earnings ESP comes up unfavorable, investors should note this will lower the predictive power of the metric. However, a bad value is not indicative of a stock’s earnings miss.
Many organizations wind up beating the consensus EPS estimate, but that might not be the sole foundation for their stocks moving higher. On the other hand, several stocks might keep the ground of theirs even if they end up missing the consensus estimate.
Because of this, it’s truly crucial that you examine a company’s Earnings ESP ahead of its quarterly discharge to increase the likelihood of success. Be sure to utilize our Earnings ESP Filter to uncover the most effective stocks to invest in or maybe promote before they have reported.