Ericsson (ERIC) Advances While Market Declines: Some Information for Investors
Ericsson (ERIC) ended the recent trading session at $5.49, demonstrating a +0.18% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.12% for the day. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 0.41%.
The telecommunications equipment provider's shares have seen an increase of 0.92% over the last month, not keeping up with the Computer and Technology sector's gain of 6.12% and the S&P 500's gain of 4.83%.
Market participants will be closely following the financial results of Ericsson in its upcoming release. On that day, Ericsson is projected to report earnings of $0.04 per share, which would represent a year-over-year decline of 50%. In the meantime, our current consensus estimate forecasts the revenue to be $5.33 billion, indicating a 10.95% decline compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.42 per share and a revenue of $24.03 billion, indicating changes of -2.33% and -3.23%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Ericsson. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Ericsson is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Ericsson has a Forward P/E ratio of 13.11 right now. Its industry sports an average Forward P/E of 14.33, so one might conclude that Ericsson is trading at a discount comparatively.
The Wireless Equipment industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 170, this industry ranks in the bottom 33% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Ericsson (ERIC) : Free Stock Analysis Report
