In case you’re looking for a stock which has a great history of beating earnings estimates and it is in a great place to sustain the pattern in the next quarterly report of its, you should 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 chipmaker has an established history of topping earnings estimates, particularly when looking at the prior 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 instead, representing a surprise of 13.89 %. For the earlier quarter, the consensus estimation was $0.16 per AMD share, while it actually produced $0.18 per share, a surprise of 12.50 %.
Cost 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 truth, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is actually positive, which is actually a great warning of an earnings beat, especially when coupled with the solid Zacks Rank of its.
Our investigation shows that stocks with the mix of an optimistic Earnings ESP & a Zacks Rank #3 (Hold) or perhaps better deliver a good surprise about 70 % of the moment. Quite simply, if you’ve 10 stocks with this particular blend, the number of stocks that match the consensus estimate could be as high as 7.
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 related to change. The concept here is that analysts revising their estimates right before an earnings release have the latest info, which may likely become more precise compared to what they and some bringing about the consensus had predicted earlier.
Advanced Micro has an Earnings ESP of +3.23 % at the moment, hinting that analysts have developed bullish on the near-term earnings potential of its. As soon as you combine 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 negative, investors must be aware that this will lower the predictive power of the metric. Nevertheless, a bad value isn’t signs of a stock’s earnings miss.
Many businesses end up beating the consensus EPS estimate, but that may not be the lone basis for their stocks moving higher. On the other hand, several stocks might keep their ground even in case they wind up missing the consensus estimate.
Because of this particular, it is truly vital that you check a company’s Earnings ESP in advance of its quarterly release to raise the odds of success. You’ll want to use our Earnings ESP Filter to uncover the very best stocks to purchase or maybe sell before they have reported.