If you’re looking for a stock which has a solid history of beating earnings estimates and is in a good spot to maintain the pattern in the next quarterly report of its, you ought 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, especially when looking at the previous 2 reports. The company boasts an average surprise for the past 2 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 instead, 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 %.
Cost as well as EPS Surprise
Thanks in part to this particular past, there continues to be a favorable change of earnings estimates for Advanced Micro lately. In truth, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is actually positive, which is actually a good indicator of an earnings beat, particularly when coupled with its solid Zacks Rank.
The investigation of ours shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or perhaps much better deliver a positive surprise about seventy % of the time. Quite simply, if you’ve ten stocks with this particular combination, the number of stocks that match the consensus estimate could be as high as 7.
The Zacks Earnings ESP compares probably 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 definition is related to change. The idea here is that analysts revising the estimates of theirs right before an earnings release have the most up info, which may likely become more accurate compared to what they and others bringing about the consensus had predicted previously.
Advanced Micro has an Earnings ESP of +3.23 % at the moment, suggesting that analysts have developed bullish on its near-term earnings possibilities. Once you combine this positive Earnings ESP with the stock’s Zacks Rank #3 (Hold), it shows that another beat is perhaps nearby.
When the Earnings ESP comes up unfavorable, investors should be aware that this will decrease the predictive power of the metric. Nevertheless, a negative value isn’t signs of a stock’s earnings miss.
Many organizations end up beating the consensus EPS estimate, but that might not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they wind up missing the consensus estimate.
Due to this particular, it’s really vital that you examine a company’s Earnings ESP in front of its quarterly release to increase the likelihood of success. Ensure that you use our Earnings ESP Filter to uncover the most effective stocks to purchase as well as promote before they’ve reported.