If you are looking for a stock with a solid history of beating earnings estimates and is in a great spot to sustain the movement in its next quarterly report, you should consider Advanced Micro Devices (AMD). This business, which happens to be in the Zacks Electronics – Semiconductors business, shows ability for another earnings beat.
This chipmaker has an established record of topping earnings estimates, especially when looking at the prior two reports. The company boasts an average surprise for the past 2 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 rather, representing a surprise of 13.89 %. For the prior quarter, the consensus estimate was $0.16 per AMD share, while it actually produced $0.18 per share, a surprise of 12.50 %.
Price as well as EPS Surprise
Thanks in part to this history, there has been a favorable change of earnings estimates for Advanced Micro lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is actually good, which is actually a great warning of an earnings beat, mainly when coupled with its solid Zacks Rank.
The research of ours shows that stocks with the mix of a confident Earnings ESP and a Zacks Rank #3 (Hold) or perhaps better deliver a positive surprise nearly 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 is usually as high as 7.
The Zacks Earnings ESP compares probably the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is actually related to change. The idea here’s that analysts revising the estimates of theirs directly before an earnings release have the latest information, which could likely become more precise compared to what they and others contributing to the consensus had predicted previously.
Advanced Micro has an Earnings ESP of +3.23 % at the moment, suggesting that analysts have grown bullish on the near term earnings possibilities of its. Once you incorporate this positive 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 must note that this will decrease the predictive power of the metric. However, a negative value is not indicative of a stock’s earnings miss.
A lot of companies wind up beating the consensus EPS appraisal, but that may not be the main justification for their stocks moving higher. On the other hand, some stocks might hold the ground of theirs even in case they end up missing the consensus estimate.
Because of this particular, it is truly important to examine a company’s Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the most effective stocks to invest in or promote before they have reported.