In case you’re looking for a stock with a great history of beating earnings estimates and it is in a good position to manage the pattern in the next quarterly report of its, you ought to think about Advanced Micro Devices (AMD). This company, which is in the Zacks Electronics – Semiconductors business, shows potential for another earnings beat.
This particular chipmaker has an established record of topping earnings estimates, particularly when looking at the preceding two reports. The company boasts an average surprise in the past two quarters of 13.19 %.
For essentially the most recent quarter, Advanced Micro was likely to submit 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 %.
Price and EPS Surprise
Thanks in part to this past, there has been 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 a good sign of an earnings beat, particularly when coupled with the strong Zacks Rank of its.
Our research shows that stocks with the mix of an optimistic Earnings ESP & a Zacks Rank #3 (Hold) or perhaps much better deliver a positive surprise about 70 % of the time. Quite simply, if you’ve ten stocks with this particular combination, the number of stocks that outdo the consensus estimate could be as high as 7.
The Zacks Earnings ESP compares probably 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 related to change. The thought here’s that analysts revising the estimates of theirs right before an earnings release contain the latest info, which might likely be more precise compared to what they while others contributing to the consensus had predicted previously.
Advanced Micro has an Earnings ESP of +3.23 % at the moment, suggesting 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 note that this will lower the predictive power of the metric. However, a negative value just isn’t indicative of a stock’s earnings miss.
Many companies wind up beating the consensus EPS appraisal, but that is quite possibly not the lone foundation 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’s really vital that you look at a company’s Earnings ESP in front of its quarterly discharge to raise the chances of success. You’ll want to use our Earnings ESP Filter to uncover the very best stocks to invest in or promote before they’ve reported.