If you are searching for a stock which has a solid history of beating earnings estimates and is in an excellent place to maintain the pattern in its next quarterly report, you need to consider Advanced Micro Devices (AMD). This company, which is in the Zacks Electronics – Semiconductors industry, shows ability for another earnings beat.
This particular chipmaker has an established record of topping earnings estimates, especially when looking at the earlier 2 reports. The company boasts an average surprise in 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 rather, representing a surprise of 13.89 %. For the prior quarter, the consensus estimate was $0.16 per AMD share, while it really produced $0.18 per share, a surprise of 12.50 %.
Price and EPS Surprise
Thanks in part to this past, 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 actually good, which is actually a great warning of an earnings beat, particularly when matched with its strong Zacks Rank.
Our research shows that stocks with the combination of an optimistic Earnings ESP & a Zacks Rank #3 (Hold) or better deliver a good surprise about seventy % of the moment. Put simply, if you’ve 10 stocks with this combination, the number of stocks that match 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 actually a version of the Zacks Consensus whose definition is associated to change. The thought here’s that analysts revising the estimates of theirs straightaway before an earnings release contain the latest information, which might likely be more precise compared to what they and others bringing about 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 possibilities of its. Once you incorporate this positive Earnings ESP with the stock’s Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner.
If ever the Earnings ESP comes up unfavorable, investors should be aware that this will decrease the predictive power of the metric. Nonetheless, a negative value is not indicative of a stock’s earnings miss.
A lot of companies wind up beating the consensus EPS estimate, but that might not be the sole foundation for their stocks moving higher. On the other hand, several stocks may hold their ground even if they wind up missing the consensus estimate.
Due to this particular, it is truly vital that you check a company’s Earnings ESP ahead of its quarterly discharge to raise the likelihood of success. Ensure that you utilize our Earnings ESP Filter to uncover the very best stocks to buy as well as sell before they have reported.