If you are looking for a stock that has a great history of beating earnings estimates and it is in a great spot to sustain the movement in the next quarterly report of its, you need to think about Advanced Micro Devices (AMD). This business, which happens to be in the Zacks Electronics – Semiconductors industry, shows potential for another earnings beat.
This chipmaker has an established record of topping earnings estimates, especially when looking at the prior 2 reports. The company boasts an average surprise for the past 2 quarters of 13.19 %.
For essentially the most recent quarter, Advanced Micro was likely 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 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 history, there has been a favorable change of earnings estimates for Advanced Micro lately. In truth, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is actually positive, which is a good sign of an earnings beat, especially when combined with the strong Zacks Rank of its.
Our investigation shows that stocks with the blend of an optimistic Earnings ESP and a Zacks Rank #3 (Hold) or perhaps much better deliver a good surprise almost seventy % of the moment. Quite simply, in case you have ten stocks with this particular blend, the number of stocks that match the consensus estimate might be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; probably the Most Accurate Estimate is a version of the Zacks Consensus whose description is actually connected to change. The idea here is that analysts revising their estimates directly before an earnings release hold the most up info, which may potentially become more accurate than what they while others contributing to the consensus had predicted earlier.
Advanced Micro has an Earnings ESP of +3.23 % at the second, hinting that analysts have developed bullish on its near term earnings possibilities. As soon as you combine this good Earnings ESP with the stock’s Zacks Rank #3 (Hold), it shows that another beat is possibly nearby.
Whenever the Earnings ESP comes up negative, investors should be aware that this will reduce the predictive power of the metric. Nonetheless, a negative value isn’t signs of a stock’s earnings miss.
Many companies wind up beating the consensus EPS appraisal, but that may not be the single basis for their stocks moving higher. On the other hand, some stocks may hold the ground of theirs even if they end up missing the consensus estimate.
Due to this, it is seriously vital that you examine a company’s Earnings ESP ahead of its quarterly release to increase the odds of success. You’ll want to use our Earnings ESP Filter to uncover the most effective stocks to purchase or possibly promote before they have reported.