Positive Earnings Surprises Expected for AMD and Alphabet

Investors should watch Advanced Micro Devices (AMD) and Alphabet (GOOGL) as their upcoming earnings releases show positive Earnings ESP metrics. This could lead to potential stock price increases, benefiting traders looking for growth opportunities.

Date: 01-04-2025

AI Rating: 7

Earnings Insights
The report highlights the significance of Earnings Per Share (EPS) as a key indicator for investors. Specifically, it emphasizes the impact of positive earnings surprises on stock prices. The Earnings ESP metric, which measures the potential surprise by evaluating analyst estimates, provides insight into which stocks may exceed expectations.

For Advanced Micro Devices (AMD), the Most Accurate Estimate of $0.95 indicates a positive Earnings ESP of +2.01%, compared to the Zacks Consensus Estimate of $0.93. This suggests a likely positive earnings surprise, which could enhance investor confidence and drive up the stock price. Additionally, AMD currently holds a #3 (Hold) rating, indicating that it is expected to perform in line with the market.

Alphabet (GOOGL) also presents a noteworthy case. With a Most Accurate Estimate of $2.12 against a Zacks Consensus of $2.02, GOOGL’s Earnings ESP of +5.1% suggests it may likewise deliver a positive earnings surprise. The combination of a #3 (Hold) rating means that it is projected to perform adequately, yet the potential upside from a positive surprise could attract investor interest.

Investor Considerations
For investors looking for stocks with a higher probability of positive earnings surprises, both AMD and GOOGL are noteworthy candidates based on their recent metrics. Historically, stocks that exhibit positive Earnings ESP along with solid ratings have shown a tendency to exceed expectations, leading to greater returns.

Overall, both AMD and GOOGL could serve as opportunities for investors, particularly those focusing on short- to medium-term gains driven by earnings performance. The market's response to their forthcoming earnings releases will be crucial in determining the next steps for both stocks.

Stocks: AMD GOOGL