In case you’re searching for a stock with an excellent history of beating earnings estimates and it is in a great spot to sustain the movement in its next quarterly report, you need to consider Advanced Micro Devices (AMD). This company, which is in the Zacks Electronics – Semiconductors industry, shows potential for another earnings beat.
This chipmaker has an established history of topping earnings estimates, specifically when looking at the earlier 2 reports. The company boasts an average surprise in the past two quarters of 13.19 %.
For essentially 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 earlier 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 history, there continues to be a favorable change in earnings estimates for Advanced Micro lately. In truth, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is actually positive, which is a great indicator of an earnings beat, especially when combined with the solid Zacks Rank of its.
The investigation of ours shows that stocks with the combination of a confident Earnings ESP & a Zacks Rank #3 (Hold) or perhaps much better make a good surprise almost seventy % of the time. In other words, in case you’ve 10 stocks with this particular combination, 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 a version of the Zacks Consensus whose definition is associated to change. The thought here is that analysts revising their estimates directly before an earnings release have the latest information, which may potentially become more precise than what they while others contributing to the consensus had predicted previously.
Advanced Micro has an Earnings ESP of +3.23 % at the second, hinting that analysts have developed bullish on its near-term earnings possibilities. When you combine this good Earnings ESP with the stock’s Zacks Rank #3 (Hold), it shows that another beat is possibly nearby.
If ever the Earnings ESP comes up negative, investors must note this will lower the predictive power of the metric. However, a bad value isn’t indicative of a stock’s earnings miss.
Many organizations wind up beating the consensus EPS estimate, but that might not be the lone basis for their stocks moving higher. On the other hand, several stocks might hold the ground of theirs even if they wind up missing the consensus estimate.
Because of this, it’s really crucial that you examine a company’s Earnings ESP in advance of its quarterly discharge to raise the odds of success. Be sure to utilize our Earnings ESP Filter to uncover the very best stocks to invest in as well as advertise before they’ve reported.