In case you’re searching for a stock that has a great history of beating earnings estimates and is in a great spot to sustain the movement in the next quarterly report of its, you need to consider Advanced Micro Devices (AMD). This business, and that is in the Zacks Electronics – Semiconductors business, shows potential for another earnings beat.

This particular chipmaker has an established history of topping earnings estimates, particularly when looking at the prior 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 anticipated to submit 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 estimation 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 in earnings estimates for Advanced Micro lately. In reality, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is good, which is a great indicator of an earnings beat, particularly when coupled with its strong Zacks Rank.

Our investigation shows that stocks with the mix of a positive Earnings ESP and a Zacks Rank #3 (Hold) or much better produce a good surprise about seventy % of the time. Quite simply, if you have 10 stocks with this particular blend, the amount of stocks that beat the consensus estimate might be as high as 7.

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 description is actually related to change. The concept here’s that analysts revising their estimates straightaway before an earnings release hold the most up information, which could potentially be more accurate than what they and some bringing about the consensus had predicted previously.

Advanced Micro has an Earnings ESP of +3.23 % at the moment, hinting that analysts have grown bullish on the near term earnings potential of its. When you incorporate this good Earnings ESP with the stock’s Zacks Rank #3 (Hold), it shows that another beat is probably nearby.

If ever the Earnings ESP comes up negative, investors must note that this will reduce the predictive power of the metric. Nonetheless, a negative value is not signs of a stock’s earnings miss.

Many organizations end up beating the consensus EPS appraisal, but that may not be the single foundation for their stocks moving higher. On the other hand, several stocks may hold their ground even if they end up missing the consensus estimate.

Due to this, it’s seriously important to look at a company’s Earnings ESP in front of its quarterly release to increase the odds of success. Ensure that you use our Earnings ESP Filter to uncover the very best stocks to buy as well as advertise before they’ve reported.