In case you’re searching for a stock that has a solid history of beating earnings estimates and it is in a good spot to manage the trend in the next quarterly report of its, you ought 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 record of topping earnings estimates, especially when looking at the preceding two reports. The company boasts an average surprise for the past 2 quarters of 13.19 %.
For the most recent quarter, Advanced Micro was anticipated to publish earnings of $0.36 per share, but it reported $0.41 per share rather, representing a surprise of 13.89 %. For the previous quarter, the consensus estimate was $0.16 per AMD share, while it really produced $0.18 per share, a surprise of 12.50 %.
Cost as well as EPS Surprise
Thanks in part to this particular 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 actually an excellent warning of an earnings beat, mainly when coupled with its strong Zacks Rank.
The research of ours shows that stocks with the blend of an optimistic Earnings ESP & a Zacks Rank #3 (Hold) or even better make a positive surprise almost seventy % of the time. Put simply, in case you’ve 10 stocks with this blend, the number of stocks that outdo the consensus estimate could be as high as 7.
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 associated to change. The idea here’s that analysts revising the estimates of theirs straightaway before an earnings release hold the most recent information, which could likely become more accurate 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 combine this good Earnings ESP with the stock’s Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner.
When the Earnings ESP comes up unfavorable, investors must be aware this will lower the predictive power of the metric. But, a bad value just isn’t indicative of a stock’s earnings miss.
Many organizations wind up beating the consensus EPS estimate, but that might not be the main justification for their stocks moving higher. On the other hand, some stocks may keep the ground of theirs even in case they end up missing the consensus estimate.
Due to this particular, it’s really crucial that you check a company’s Earnings ESP ahead of its quarterly release to raise the likelihood of success. Make sure you utilize our Earnings ESP Filter to uncover the best stocks to buy or even advertise before they’ve reported.