If you are looking for a stock with a great history of beating earnings estimates and is in an excellent place to sustain the pattern in its next quarterly report, you ought to consider Advanced Micro Devices (AMD). This company, which is in the Zacks Electronics – Semiconductors industry, shows potential for another earnings beat.
This chipmaker has an established record of topping earnings estimates, specifically when looking at the preceding two 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 previous quarter, the consensus estimate was $0.16 per AMD share, while it really produced $0.18 per share, a surprise of 12.50 %.
Cost as well as EPS Surprise
Thanks in part to this particular history, 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 good, which is actually a good sign of an earnings beat, mainly when matched with the strong Zacks Rank of its.
The investigation of ours shows that stocks with the combination of a confident Earnings ESP and a Zacks Rank #3 (Hold) or perhaps better deliver a positive surprise about seventy % of the time. Quite simply, if you have 10 stocks with this blend, the amount of stocks that match the consensus estimate could 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 connected to change. The idea here’s that analysts revising the estimates of theirs straightaway before an earnings release have the most recent information, which may likely be more precise compared to what they and some bringing about the consensus had predicted previously.
Advanced Micro has an Earnings ESP of +3.23 % at the second, suggesting that analysts have developed bullish on its near-term earnings possibilities. Once you combine this good Earnings ESP with the stock’s Zacks Rank #3 (Hold), it shows that another beat is probably nearby.
If ever the Earnings ESP comes up negative, investors should note that this will lower the predictive power of the metric. However, a negative value isn’t signs of a stock’s earnings miss.
Many businesses wind up beating the consensus EPS appraisal, but that is quite possibly not the single justification for their stocks moving higher. On the other hand, several stocks could keep their ground even if they end up missing the consensus estimate.
Because of this particular, it is seriously vital that you examine a company’s Earnings ESP in front of its quarterly release to increase the chances of success. Make sure you utilize our Earnings ESP Filter to uncover the best stocks to invest in or maybe promote before they have reported.