If you are searching for a stock which has a solid history of beating earnings estimates and is in a great position to sustain the trend in the next quarterly report of its, you need to consider Advanced Micro Devices (AMD). This company, which is in the Zacks Electronics – Semiconductors industry, shows potential for another earnings beat.
This particular chipmaker has an established record of topping earnings estimates, specifically when looking at the earlier two reports. The company boasts an average surprise for the past 2 quarters of 13.19 %.
For the most recent quarter, Advanced Micro was anticipated to publish earnings of $0.36 per share, but it reported $0.41 per share rather, representing a surprise of 13.89 %. For the earlier 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 history, there has been a favorable change in earnings estimates for Advanced Micro lately. In reality, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is actually positive, which is a great sign of an earnings beat, particularly when matched with its strong Zacks Rank.
The investigation of ours shows that stocks with the mix of an optimistic Earnings ESP & a Zacks Rank #3 (Hold) or perhaps much better produce a positive surprise almost seventy % of the time. In other words, in case you’ve ten stocks with this particular blend, the number of stocks that beat 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; the Most Accurate Estimate is a version of the Zacks Consensus whose description is connected to change. The idea here’s that analysts revising the estimates of theirs straightaway before an earnings release contain the latest info, which may likely become more accurate than what they and others bringing about the consensus had predicted earlier.
Advanced Micro has an Earnings ESP of +3.23 % at the second, hinting that analysts have developed bullish on the near term earnings possibilities of its. When you combine this positive Earnings ESP with the stock’s Zacks Rank #3 (Hold), it shows that another beat is probably nearby.
When the Earnings ESP comes up negative, investors must be aware that this will decrease the predictive power of the metric. But, a bad value is not signs of a stock’s earnings miss.
A lot of companies end up beating the consensus EPS estimate, but that is quite possibly not the single basis for their stocks moving higher. On the other hand, some stocks might hold their ground even in case they wind up missing the consensus estimate.
Because of this, it’s seriously vital that you examine a company’s Earnings ESP in advance of its quarterly discharge to raise the chances of success. Make sure to use our Earnings ESP Filter to uncover the best stocks to buy or maybe sell before they have reported.