In case you are looking for a stock that has a great history of beating earnings estimates and is in an excellent position to maintain the trend in the next quarterly report of its, you ought to consider 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 history of topping earnings estimates, especially when looking at the earlier two reports. The company boasts an average surprise in the past 2 quarters of 13.19 %.
For 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 preceding quarter, the consensus estimate was $0.16 per AMD share, while it really produced $0.18 per share, a surprise of 12.50 %.
Price 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 fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is good, which is actually a great sign of an earnings beat, especially when combined with the solid Zacks Rank of its.
The research of ours shows that stocks with the blend of an optimistic Earnings ESP & a Zacks Rank #3 (Hold) or even better deliver a positive surprise about 70 % of the moment. Put simply, if you’ve ten stocks with this particular combination, the amount of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares 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 actually associated to change. The idea here is that analysts revising the estimates of theirs directly before an earnings release hold the most up information, which might likely become more precise than 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 grown 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 around the corner.
If ever the Earnings ESP comes up negative, investors must be aware that this will reduce the predictive power of the metric. Nonetheless, a bad value is not signs of a stock’s earnings miss.
Many organizations wind up beating the consensus EPS estimate, but that may not be the main foundation for their stocks moving higher. On the other hand, some stocks might hold their ground even in case they end up missing the consensus estimate.
Because of this, it is really important to check a company’s Earnings ESP ahead of its quarterly discharge to raise the chances of success. Ensure that you use our Earnings ESP Filter to uncover the very best stocks to purchase or possibly sell before they have reported.