In case you’re looking for a stock that has a solid history of beating earnings estimates and it is in a great spot to maintain the pattern in its next quarterly report, you ought to think about Advanced Micro Devices (AMD). This company, which happens to be in the Zacks Electronics – Semiconductors business, shows capability for another earnings beat.
This particular chipmaker has an established record of topping earnings estimates, particularly when looking at the preceding 2 reports. The company boasts an average surprise in the past two quarters of 13.19 %.
For likely the most recent quarter, Advanced Micro was anticipated to publish earnings of $0.36 per share, but it reported $0.41 per share instead, representing a surprise of 13.89 %. For the preceding quarter, the consensus estimation 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 past, there continues to be a favorable change of earnings estimates for Advanced Micro lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is good, which is actually an excellent indicator of an earnings beat, particularly when matched with the solid Zacks Rank of its.
The investigation of ours shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or much better make a positive surprise about 70 % of the moment. Quite simply, if you’ve 10 stocks with this combination, the amount of stocks that outdo the consensus estimate is usually as high as 7.
The Zacks Earnings ESP compares probably the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose description is associated to change. The idea here’s that analysts revising the estimates of theirs right before an earnings release hold the most recent info, which could likely be a little 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 moment, hinting that analysts have evolved bullish on the near term earnings potential of its. Once you combine this good Earnings ESP with the stock’s Zacks Rank #3 (Hold), it shows that another beat is perhaps nearby.
If ever the Earnings ESP comes up negative, investors must note this will decrease the predictive power of the metric. Nonetheless, a bad value isn’t indicative of a stock’s earnings miss.
Many businesses wind up beating the consensus EPS estimate, but that might not be the sole basis for their stocks moving higher. On the other hand, several stocks may hold the ground of theirs even in case they wind up missing the consensus estimate.
Because of this particular, it is really crucial that you examine a company’s Earnings ESP in advance of its quarterly discharge to raise the chances of success. You’ll want to utilize our Earnings ESP Filter to uncover the best stocks to invest in or maybe sell before they have reported.