If you are looking for a stock which has an excellent history of beating earnings estimates and is in an excellent place to manage the pattern in the next quarterly report of its, you should think about Advanced Micro Devices (AMD). This company, and that is in the Zacks Electronics – Semiconductors business, shows ability for another earnings beat.
This particular chipmaker has an established history of topping earnings estimates, specifically when looking at the previous 2 reports. The company boasts an average surprise for the past two quarters of 13.19 %.
For probably 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 prior quarter, the consensus estimation was $0.16 per AMD share, while it really produced $0.18 per share, a surprise of 12.50 %.
Price as well as EPS Surprise
Thanks in part to this particular past, there continues to be a favorable change in earnings estimates for Advanced Micro lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great warning of an earnings beat, mainly when combined with its strong Zacks Rank.
Our investigation shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or much better deliver a good surprise about 70 % of the moment. In other words, if you’ve 10 stocks with this particular blend, the number of stocks that match the consensus estimate might be as high as seven.
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 idea here is that analysts revising their estimates straightaway before an earnings release contain the latest info, which may potentially be more accurate compared to what they and others bringing about the consensus had predicted previously.
Advanced Micro has an Earnings ESP of +3.23 % at the second, hinting that analysts have evolved bullish on its near-term earnings possibilities. When you combine this good Earnings ESP with the stock’s Zacks Rank #3 (Hold), it shows that another beat is probably around the corner.
Whenever the Earnings ESP comes up unfavorable, investors must note this will lower the predictive power of the metric. However, a bad value just isn’t indicative of a stock’s earnings miss.
Many organizations wind up beating the consensus EPS appraisal, but that is quite possibly not the lone justification for their stocks moving higher. On the other hand, several stocks might hold their ground even in case they wind up missing the consensus estimate.
Due to this particular, it’s really crucial that you check a company’s Earnings ESP in advance of its quarterly release to raise the likelihood of success. You’ll want to utilize our Earnings ESP Filter to uncover the most effective stocks to invest in or even sell before they have reported.