In case you’re searching for a stock with an excellent history of beating earnings estimates and it is in a great place to maintain the trend in its next quarterly report, you ought to think about Advanced Micro Devices (AMD). This company, which is in the Zacks Electronics – Semiconductors industry, shows ability for another earnings beat.
This particular chipmaker has an established record of topping earnings estimates, specifically when looking at the previous 2 reports. The company boasts an average surprise in the past 2 quarters of 13.19 %.
For likely the most recent quarter, Advanced Micro was likely 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 estimate was $0.16 per AMD share, while it actually produced $0.18 per share, a surprise of 12.50 %.
Cost as well as EPS Surprise
Thanks in part to this particular past, there has been 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 great indicator of an earnings beat, particularly when combined with the solid Zacks Rank of its.
Our investigation shows that stocks with the blend of a confident Earnings ESP & a Zacks Rank #3 (Hold) or better make a positive surprise about seventy % of the time. Put simply, if you’ve ten stocks with this combination, the amount of stocks that match the consensus estimate might 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 thought here is that analysts revising their estimates directly before an earnings release hold the latest information, which may likely be a little more precise than what they and some leading 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 the near-term earnings possibilities of its. When you incorporate this positive Earnings ESP with the stock’s Zacks Rank #3 (Hold), it shows that another beat is probably around the corner.
If ever the Earnings ESP comes up negative, investors should be aware this will lower the predictive power of the metric. Nevertheless, a negative value is not indicative of a stock’s earnings miss.
A lot of companies wind up beating the consensus EPS estimate, but that might not be the main foundation for their stocks moving higher. On the other hand, several stocks could hold their ground even in case they end up missing the consensus estimate.
Because of this, it’s truly crucial that you look at a company’s Earnings ESP ahead of its quarterly release to increase the chances of success. You’ll want to utilize our Earnings ESP Filter to uncover the very best stocks to purchase or possibly advertise before they have reported.