In case you’re looking for a stock that has a great history of beating earnings estimates and is in a great position 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 business, shows potential for another earnings beat.
This particular chipmaker has an established history of topping earnings estimates, specifically when looking at the previous two reports. The company boasts an average surprise for the past 2 quarters of 13.19 %.
For likely the most recent quarter, Advanced Micro was likely 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 estimate was $0.16 per AMD share, while it actually 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 truth, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is actually positive, which is a good indicator of an earnings beat, especially when coupled with the strong Zacks Rank of its.
Our research shows that stocks with the mix of a confident Earnings ESP and a Zacks Rank #3 (Hold) or even much better deliver a good surprise nearly seventy % of the moment. Put simply, in case you have ten stocks with this combination, 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 associated to change. The thought here is that analysts revising the estimates of theirs straightaway before an earnings release contain the most recent information, which could potentially be a little more accurate than what they and some contributing to the consensus had predicted previously.
Advanced Micro has an Earnings ESP of +3.23 % at the second, hinting that analysts have developed bullish on its near-term earnings possibilities. When you combine this good 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 negative, investors should note this will lower the predictive power of the metric. Nevertheless, a negative value is not indicative of a stock’s earnings miss.
Many companies wind up beating the consensus EPS appraisal, but that might not be the single foundation for their stocks moving higher. On the other hand, some stocks could keep their ground even if they end up missing the consensus estimate.
Due to this particular, it is really important to examine a company’s Earnings ESP ahead of its quarterly discharge to raise the odds of success. You’ll want to utilize our Earnings ESP Filter to uncover the best stocks to invest in or maybe advertise before they have reported.