In case you’re searching for a stock with a great history of beating earnings estimates and is in an excellent place to sustain the pattern in the next quarterly report of its, you should consider 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, specifically when looking at the preceding 2 reports. The company boasts an average surprise for the past two quarters of 13.19 %.
For the most recent quarter, Advanced Micro was expected to submit earnings of $0.36 per share, but it reported $0.41 per share instead, representing a surprise of 13.89 %. For the previous 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 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 good, which is actually a good warning of an earnings beat, especially when coupled with its strong Zacks Rank.
The research of ours shows that stocks with the combination of an optimistic Earnings ESP & a Zacks Rank #3 (Hold) or better make a positive surprise about 70 % of the time. Put simply, in case you’ve 10 stocks with this blend, the amount of stocks that match 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 definition is related to change. The idea here’s that analysts revising the estimates of theirs right before an earnings release hold the latest info, which may potentially become more accurate than what they and others leading to the consensus had predicted earlier.
Advanced Micro has an Earnings ESP of +3.23 % at the moment, suggesting that analysts have grown bullish on the near term earnings potential of its. When you incorporate this good Earnings ESP with the stock’s Zacks Rank #3 (Hold), it shows that another beat is perhaps around the corner.
If ever the Earnings ESP comes up negative, investors should note that this will lower the predictive power of the metric. But, a bad value is not signs of a stock’s earnings miss.
A lot of companies 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 in case they wind up missing the consensus estimate.
Because of this particular, it is really important to look at a company’s Earnings ESP in front of its quarterly release to raise the odds of success. Make sure you use our Earnings ESP Filter to uncover the best stocks to buy or even sell before they have reported.