If you are searching for a stock that has an excellent history of beating earnings estimates and is in a great position to sustain the movement in the next quarterly report of its, you ought to think about Advanced Micro Devices (AMD). This company, which is in the Zacks Electronics – Semiconductors business, shows potential for another earnings beat.
This particular chipmaker has an established record of topping earnings estimates, particularly when looking at the earlier 2 reports. The company boasts an average surprise in the past 2 quarters of 13.19 %.
For the most recent quarter, Advanced Micro was expected to submit earnings of $0.36 per share, but it reported $0.41 per share instead, representing a surprise of 13.89 %. For the prior quarter, the consensus estimate was $0.16 per AMD share, while it actually produced $0.18 per share, a surprise of 12.50 %.
Cost and EPS Surprise
Thanks in part to this history, there continues to be 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 good sign of an earnings beat, mainly when combined with its solid Zacks Rank.
Our investigation shows that stocks with the mix of an optimistic Earnings ESP and a Zacks Rank #3 (Hold) or even better make a good surprise nearly seventy % of the time. 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 the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is actually a version of the Zacks Consensus whose definition is actually connected to change. The thought here’s that analysts revising the estimates of theirs straightaway before an earnings release hold the most recent info, which could potentially be a little more accurate compared to what they and others contributing to the consensus had predicted previously.
Advanced Micro has an Earnings ESP of +3.23 % at the moment, hinting that analysts have developed bullish on its near term earnings possibilities. When you incorporate this good Earnings ESP with the stock’s Zacks Rank #3 (Hold), it shows that another beat is possibly nearby.
When the Earnings ESP comes up negative, investors should note this will decrease the predictive power of the metric. But, a bad value just isn’t signs of a stock’s earnings miss.
Many businesses 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 may hold their ground even if they end up missing the consensus estimate.
Due to this, it’s seriously vital that you check a company’s Earnings ESP in advance of its quarterly release to increase the odds of success. Make sure you utilize our Earnings ESP Filter to uncover the best stocks to invest in as well as promote before they’ve reported.