If you are searching for a stock with a great history of beating earnings estimates and is in a good position to manage the trend in its next quarterly report, you should consider Advanced Micro Devices (AMD). This company, and that is in the Zacks Electronics – Semiconductors industry, shows capability for another earnings beat.
This particular chipmaker has an established record of topping earnings estimates, especially when looking at the prior two reports. The company boasts an average surprise for the past two 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 previous quarter, the consensus estimate 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 of earnings estimates for Advanced Micro lately. In reality, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is actually positive, which is actually an excellent warning of an earnings beat, particularly when coupled with the solid Zacks Rank of its.
Our research shows that stocks with the combination of an optimistic Earnings ESP & a Zacks Rank #3 (Hold) or perhaps better deliver a positive surprise nearly 70 % of the moment. In other words, in case you’ve 10 stocks with this combination, the number of stocks that beat 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; the Most Accurate Estimate is a version of the Zacks Consensus whose description is related to change. The idea here’s that analysts revising the estimates of theirs right before an earnings release have the most up info, which may likely be more precise compared to what they while others leading to the consensus had predicted previously.
Advanced Micro has an Earnings ESP of +3.23 % at the second, suggesting that analysts have evolved 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 probably nearby.
If ever the Earnings ESP comes up unfavorable, investors must note this will reduce the predictive power of the metric. Nonetheless, a negative value is not indicative of a stock’s earnings miss.
Many organizations end up beating the consensus EPS appraisal, but that is quite possibly not the sole basis for their stocks moving higher. On the other hand, several stocks might keep the ground of theirs even if they end up missing the consensus estimate.
Because of this particular, it is truly crucial that you look at a company’s Earnings ESP in front of its quarterly discharge to increase the chances of success. Make sure you use our Earnings ESP Filter to uncover the very best stocks to buy as well as sell before they have reported.