If you are searching for a stock that has an excellent history of beating earnings estimates and is in an excellent position to manage the trend in its next quarterly report, you ought to think about Advanced Micro Devices (AMD). This business, which is in the Zacks Electronics – Semiconductors industry, shows capability for another earnings beat.
This particular chipmaker has an established record of topping earnings estimates, especially when looking at the prior 2 reports. The company boasts an average surprise in the past two quarters of 13.19 %.
For the most recent quarter, Advanced Micro was expected to publish 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 actually 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 of earnings estimates for Advanced Micro lately. In truth, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is actually good, which is actually a good sign of an earnings beat, especially when matched with its strong Zacks Rank.
The investigation of ours shows that stocks with the combination of an optimistic Earnings ESP & a Zacks Rank #3 (Hold) or even much better make a good surprise about seventy % of the moment. In other words, if you’ve ten stocks with this combination, the amount of stocks that outdo 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; probably the Most Accurate Estimate is actually a version of the Zacks Consensus whose description is actually associated to change. The idea here is that analysts revising the estimates of theirs directly before an earnings release contain the most recent info, which might potentially become more precise than what they and others contributing to 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 good Earnings ESP with the stock’s Zacks Rank #3 (Hold), it shows that another beat is perhaps nearby.
When the Earnings ESP comes up negative, investors must note that this will reduce the predictive power of the metric. But, a negative value just isn’t indicative of a stock’s earnings miss.
A lot of companies end up beating the consensus EPS appraisal, but that is quite possibly not the sole basis for their stocks moving higher. On the other hand, some stocks could hold their ground even if they wind up missing the consensus estimate.
Due to this particular, it is really vital that you check a company’s Earnings ESP in front of its quarterly release to raise the odds of success. Ensure that you use our Earnings ESP Filter to uncover the most effective stocks to buy or maybe promote before they have reported.