In case you are looking for a stock that has a solid history of beating earnings estimates and it is in an excellent spot to sustain the movement in its next quarterly report, you need to think about Advanced Micro Devices (AMD). This business, and that is in the Zacks Electronics – Semiconductors business, shows ability for another earnings beat.
This chipmaker has an established history of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 13.19 %.
For pretty much the most recent quarter, Advanced Micro was expected to post earnings of $0.36 per share, but it reported $0.41 per share rather, representing a surprise of 13.89 %. For the preceding quarter, the consensus estimate 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 particular past, there has been a favorable change in earnings estimates for Advanced Micro lately. In truth, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is actually positive, which is a good sign 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 & a Zacks Rank #3 (Hold) or much better produce a good surprise about seventy % of the moment. Put simply, if you have ten stocks with this particular combination, the number of stocks that beat the consensus estimate could 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 description is related to change. The thought here is that analysts revising the estimates of theirs right before an earnings release have the latest information, which might likely become more accurate than what they while others bringing about the consensus had predicted earlier.
Advanced Micro has an Earnings ESP of +3.23 % at the moment, suggesting that analysts have evolved bullish on the near-term earnings potential of its. Once you incorporate 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 negative, investors must note this will decrease the predictive power of the metric. Nevertheless, a negative value just isn’t signs of a stock’s earnings miss.
Many businesses end up beating the consensus EPS appraisal, but that may not be the main justification for their stocks moving higher. On the other hand, several stocks might hold their ground even if they end up missing the consensus estimate.
Because of this particular, it is seriously crucial that you examine a company’s Earnings ESP in advance of its quarterly discharge to raise the chances of success. Make sure you use our Earnings ESP Filter to uncover the very best stocks to buy or promote before they’ve reported.