If you are looking for a stock which has a solid history of beating earnings estimates and is in an excellent position to manage the movement in its next quarterly report, you ought to think about Advanced Micro Devices (AMD). This company, which happens to be in the Zacks Electronics – Semiconductors business, shows capability for another earnings beat.
This particular chipmaker has an established history of topping earnings estimates, especially when looking at the earlier two reports. The company boasts an average surprise in the past two quarters of 13.19 %.
For likely the most recent quarter, Advanced Micro was likely to publish 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 history, 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 actually good, which is a great warning of an earnings beat, especially when coupled with the solid Zacks Rank of its.
Our investigation shows that stocks with the combination of a confident Earnings ESP & a Zacks Rank #3 (Hold) or even much better produce a positive surprise almost 70 % of the time. Quite simply, if you have 10 stocks with this particular combination, the amount of stocks that beat 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 a version of the Zacks Consensus whose definition is actually related to change. The idea here’s that analysts revising their estimates right before an earnings release contain the most recent information, which could likely be more precise than what they while others leading to the consensus had predicted previously.
Advanced Micro has an Earnings ESP of +3.23 % at the second, suggesting that analysts have grown bullish on the near term earnings possibilities of its. As soon as 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 unfavorable, investors should note that this will reduce the predictive power of the metric. Nonetheless, a bad value just isn’t indicative of a stock’s earnings miss.
Many organizations wind up beating the consensus EPS appraisal, but that might not be the lone foundation for their stocks moving higher. On the other hand, some stocks might keep the ground of theirs even in case they end up missing the consensus estimate.
Due to this particular, it is really vital that you examine a company’s Earnings ESP ahead of its quarterly release to raise the likelihood of success. Be sure to utilize our Earnings ESP Filter to uncover the very best stocks to purchase or sell before they’ve reported.