If you’re looking for a stock with a great history of beating earnings estimates and is in a good spot to manage the pattern in its next quarterly report, you need to think about Advanced Micro Devices (AMD). This company, and that is in the Zacks Electronics – Semiconductors industry, shows potential for another earnings beat.
This particular chipmaker has an established record of topping earnings estimates, particularly when looking at the prior 2 reports. The company boasts an average surprise in the past two quarters of 13.19 %.
For the most recent quarter, Advanced Micro was anticipated to submit 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 %.
Price and EPS Surprise
Thanks in part to this particular history, 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 positive, which is actually a good sign of an earnings beat, especially when coupled with the solid Zacks Rank of its.
The research of ours shows that stocks with the combination of an optimistic Earnings ESP and a Zacks Rank #3 (Hold) or better make a good surprise about seventy % of the time. Quite simply, in case you’ve 10 stocks with this blend, the amount of stocks that match the consensus estimate might 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 actually a version of the Zacks Consensus whose description is connected to change. The concept here is that analysts revising the estimates of theirs right before an earnings release hold the latest info, which might potentially become more accurate than what they while others leading to the consensus had predicted previously.
Advanced Micro has an Earnings ESP of +3.23 % at the moment, hinting that analysts have evolved bullish on its near term earnings possibilities. Once you incorporate 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 should be aware that this will reduce the predictive power of the metric. But, a bad value isn’t indicative of a stock’s earnings miss.
Many organizations wind up beating the consensus EPS appraisal, but that is quite possibly not the main justification for their stocks moving higher. On the other hand, several stocks could keep their ground even if they end up missing the consensus estimate.
Due to this, it’s truly crucial that you check a company’s Earnings ESP in front of its quarterly release to increase the odds of success. Ensure that you use our Earnings ESP Filter to uncover the most effective stocks to invest in as well as advertise before they have reported.