If you’re looking for a stock that has an excellent history of beating earnings estimates and it is in a good place to sustain the pattern in its next quarterly report, you need to consider Advanced Micro Devices (AMD). This business, and that is in the Zacks Electronics – Semiconductors business, shows potential for another earnings beat.
This particular chipmaker has an established record of topping earnings estimates, especially when looking at the prior 2 reports. The company boasts an average surprise in the past 2 quarters of 13.19 %.
For the most recent quarter, Advanced Micro was expected 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 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 truth, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is actually good, which is actually a good indicator of an earnings beat, particularly when combined with its strong Zacks Rank.
The investigation of ours shows that stocks with the combination of a confident Earnings ESP and a Zacks Rank #3 (Hold) or better deliver a positive surprise almost seventy % of the moment. In other words, in case you have ten stocks with this blend, the amount of stocks that match the consensus estimate might 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 actually a version of the Zacks Consensus whose definition is related to change. The concept here’s that analysts revising the estimates of theirs straightaway before an earnings release have the latest information, which may likely be a little more precise than what they while others leading to the consensus had predicted previously.
Advanced Micro has an Earnings ESP of +3.23 % at the moment, suggesting 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.
When the Earnings ESP comes up unfavorable, investors should be aware this will lower the predictive power of the metric. However, a bad value isn’t indicative of a stock’s earnings miss.
A lot of companies wind up beating the consensus EPS estimate, but that is quite possibly not the sole justification for their stocks moving higher. On the other hand, some stocks may keep their ground even if they end up missing the consensus estimate.
Due to this, it’s truly crucial that you look at a company’s Earnings ESP in advance of its quarterly release to raise the chances of success. Ensure that you use our Earnings ESP Filter to uncover the best stocks to buy or advertise before they’ve reported.