In case you are searching for a stock that has a great history of beating earnings estimates and is in a good position to maintain the trend in the next quarterly report of its, you need to consider Advanced Micro Devices (AMD). This business, which happens to be in the Zacks Electronics – Semiconductors business, shows capability for another earnings beat.
This chipmaker has an established history of topping earnings estimates, particularly when looking at the earlier two reports. The company boasts an average surprise in the past two quarters of 13.19 %.
For the most recent quarter, Advanced Micro was anticipated to post earnings of $0.36 per share, but it reported $0.41 per share rather, representing a surprise of 13.89 %. For the earlier 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 past, there continues to be a favorable change in earnings estimates for Advanced Micro lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is actually good, which is actually an excellent warning of an earnings beat, particularly when matched with its solid Zacks Rank.
The research of ours shows that stocks with the mix of an optimistic Earnings ESP & a Zacks Rank #3 (Hold) or perhaps better deliver a positive surprise almost 70 % of the moment. Put simply, in case you have ten stocks with this blend, the amount of stocks that match the consensus estimate might be as high as 7.
The Zacks Earnings ESP compares probably the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; probably the Most Accurate Estimate is a version of the Zacks Consensus whose definition is connected to change. The idea here’s that analysts revising their estimates right before an earnings release have the latest information, which might likely become more accurate than what they and some contributing to the consensus had predicted earlier.
Advanced Micro has an Earnings ESP of +3.23 % at the second, suggesting that analysts have evolved bullish on its near term earnings potential. Once you incorporate this positive 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 unfavorable, investors should be aware that this will decrease the predictive power of the metric. But, a negative value is not signs of a stock’s earnings miss.
Many businesses wind up beating the consensus EPS appraisal, but that may not be the single justification for their stocks moving higher. On the other hand, several stocks might hold the ground of theirs even if they wind up missing the consensus estimate.
Because of this, it is seriously vital that you check a company’s Earnings ESP in advance of its quarterly discharge to increase the likelihood of success. Make sure to utilize our Earnings ESP Filter to uncover the very best stocks to buy or maybe sell before they’ve reported.