Earnings Insights: AMD and ADSK Poised for Positive Surprises

Positive earnings surprises loom ahead as Advanced Micro Devices (AMD) and Autodesk (ADSK) show strong expectations according to the Zacks Earnings ESP. Investors should monitor these stocks closely.

Date: 18-04-2025

AI Rating: 7

The report sheds light on the critical role earnings releases play in evaluating company performance and investor sentiment in the stock market. It emphasizes the concept of earnings surprises, indicating that stocks performing better than analysts' expectations can lead to significant price momentum.

Earnings Per Share (EPS)
Two stocks highlighted in the report are Advanced Micro Devices (AMD) and Autodesk (ADSK), both of which are showing favorable signs of beating expected earnings. AMD's Most Accurate Estimate for EPS stands at $0.94, slightly above the Zacks Consensus Estimate of $0.93, yielding a positive Earnings ESP of +1.09%. This indicates AMD might outperform its previous earnings forecast, which typically results in a rise in stock price.

For Autodesk, the Most Accurate Estimate is set at $2.16 against the Zacks Consensus Estimate of $2.14, providing an Earnings ESP of +0.94%. Such positive sentiment around both companies could attract bullish investors looking for returns in the immediate 1 to 3 month period.

Investor Strategies
The report also outlines a systematic approach to assess stocks via the Zacks Earnings ESP tool. This analytical method evaluates the difference between the most accurate and consensus estimates, effectively allowing investors to gauge which companies could surprise to the upside upon earnings release. Stocks with high positive ESP figures, such as AMD and ADSK, offer compelling investment opportunities due to their potential to outperform expectations.

Given that stocks rated #2 (Buy) or #1 (Strong Buy) have historically outperformed the broader market, AMD and ADSK’s rankings suggest a favorable outlook. Investors are likely to respond positively to successful earnings surprises, which could enhance these stocks' upward momentum. Thus, watching for both companies' earnings reports slated for May and June respectively could create strategic trading opportunities.

Stocks: AMD ADSK