In case you are searching for a stock that has a solid history of beating earnings estimates and it is in an excellent spot to sustain the movement in the next quarterly report of its, you should consider Advanced Micro Devices (AMD). This company, which happens to be in the Zacks Electronics – Semiconductors industry, shows capability for another earnings beat.
This particular chipmaker has an established record of topping earnings estimates, particularly when looking at the previous 2 reports. The company boasts an average surprise in the past two quarters of 13.19 %.
For pretty much the most recent quarter, Advanced Micro was expected to post earnings of $0.36 per share, but it reported $0.41 per share instead, representing a surprise of 13.89 %. For the previous quarter, the consensus estimation was $0.16 per AMD share, while it actually produced $0.18 per share, a surprise of 12.50 %.
Price as well as EPS Surprise
Thanks in part to this particular 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 actually positive, which is actually a good indicator of an earnings beat, mainly when matched with the strong Zacks Rank of its.
Our research shows that stocks with the blend of an optimistic Earnings ESP and a Zacks Rank #3 (Hold) or perhaps much better make a positive surprise almost seventy % of the time. Put simply, in case you’ve ten stocks with this particular blend, the amount of stocks that match the consensus estimate might 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 related to change. The idea here’s that analysts revising the estimates of theirs right before an earnings release have the latest info, which could potentially become more accurate than 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 grown bullish on the near-term earnings possibilities of its. As soon as you incorporate this positive Earnings ESP with the stock’s Zacks Rank #3 (Hold), it shows that another beat is perhaps around the corner.
If ever the Earnings ESP comes up negative, investors must be aware this will decrease the predictive power of the metric. Nonetheless, a negative value just isn’t indicative of a stock’s earnings miss.
Many businesses end up beating the consensus EPS appraisal, but that is quite possibly not the sole justification for their stocks moving higher. On the other hand, some stocks may hold the ground of theirs even in case they end up missing the consensus estimate.
Because of this particular, it is truly vital that you examine a company’s Earnings ESP in front of its quarterly release to raise the chances of success. You’ll want to use our Earnings ESP Filter to uncover the very best stocks to purchase or maybe promote before they’ve reported.