In case you’re looking for a stock with a solid history of beating earnings estimates and is in a great spot to sustain the movement in the next quarterly report of its, you need to consider Advanced Micro Devices (AMD). This company, which happens to be in the Zacks Electronics – Semiconductors business, shows ability for another earnings beat.
This particular chipmaker has an established record of topping earnings estimates, particularly when looking at the preceding two reports. The company boasts an average surprise in the past 2 quarters of 13.19 %.
For the most recent quarter, Advanced Micro was anticipated to submit 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 estimate was $0.16 per AMD share, while it really produced $0.18 per share, a surprise of 12.50 %.
Cost and EPS Surprise
Thanks in part to this past, there continues to be a favorable change of earnings estimates for Advanced Micro lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is actually a great indicator of an earnings beat, mainly when combined with the solid Zacks Rank of its.
Our research shows that stocks with the mix of a positive Earnings ESP and a Zacks Rank #3 (Hold) or perhaps much better make a positive surprise about seventy % of the time. In other words, if you’ve ten stocks with this particular combination, 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; the Most Accurate Estimate is actually a version of the Zacks Consensus whose description is actually related to change. The idea here’s that analysts revising their estimates straightaway before an earnings release hold the most up information, which may likely be more accurate than what they and some bringing about the consensus had predicted previously.
Advanced Micro has an Earnings ESP of +3.23 % at the moment, hinting that analysts have evolved bullish on the near-term earnings possibilities of its. Once you incorporate this good Earnings ESP with the stock’s Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner.
If ever the Earnings ESP comes up unfavorable, investors must note that this will reduce the predictive power of the metric. But, a bad value isn’t indicative of a stock’s earnings miss.
Many businesses wind up beating the consensus EPS appraisal, but that might not be the lone basis for their stocks moving higher. On the other hand, several stocks could keep the ground of theirs even if they end up missing the consensus estimate.
Because of this, it is really vital that you look at a company’s Earnings ESP in advance of its quarterly release to raise the odds of success. Be sure to utilize our Earnings ESP Filter to uncover the very best stocks to purchase as well as promote before they’ve reported.