If you’re looking for a stock which has a solid history of beating earnings estimates and is in a good position to sustain the pattern in the next quarterly report of its, you should think about Advanced Micro Devices (AMD). This company, and that is in the Zacks Electronics – Semiconductors industry, shows ability for another earnings beat.
This chipmaker has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 13.19 %.
For likely the most recent quarter, Advanced Micro was anticipated to post earnings of $0.36 per share, but it reported $0.41 per share rather, representing a surprise of 13.89 %. For the prior quarter, the consensus estimation was $0.16 per AMD share, while it really produced $0.18 per share, a surprise of 12.50 %.
Price and EPS Surprise
Thanks in part to this particular history, there continues to be a favorable change in earnings estimates for Advanced Micro lately. In truth, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is actually good, which is an excellent warning of an earnings beat, mainly when combined with the solid Zacks Rank of its.
The research of ours shows that stocks with the mix of a confident Earnings ESP & a Zacks Rank #3 (Hold) or perhaps much better produce a positive surprise nearly seventy % of the time. Put simply, in case you’ve 10 stocks with this combination, the number 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; probably the Most Accurate Estimate is a version of the Zacks Consensus whose description is actually associated to change. The thought here is that analysts revising the estimates of theirs right before an earnings release hold the most recent information, which could likely be more accurate compared to what they and some contributing to the consensus had predicted previously.
Advanced Micro has an Earnings ESP of +3.23 % at the second, suggesting that analysts have developed 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.
When the Earnings ESP comes up unfavorable, investors should be aware this will reduce the predictive power of the metric. But, a bad value just isn’t indicative of a stock’s earnings miss.
Many companies end up beating the consensus EPS appraisal, but that might not be the main foundation for their stocks moving higher. On the other hand, several stocks might keep the ground of theirs even in case they end up missing the consensus estimate.
Because of this, it’s truly important to look at a company’s Earnings ESP ahead of its quarterly release to increase the likelihood of success. Be sure to use our Earnings ESP Filter to uncover the most effective stocks to buy or maybe promote before they have reported.