Ericsson (ERIC) Beats Stock Market Upswing: What Investors Need to Know
Ericsson (ERIC) ended the recent trading session at $5.51, demonstrating a +1.66% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.17% gain on the day. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw an increase of 0.37%.
Coming into today, shares of the telecommunications equipment provider had lost 6.23% in the past month. In that same time, the Computer and Technology sector gained 2.34%, while the S&P 500 gained 3.8%.
Market participants will be closely following the financial results of Ericsson in its upcoming release. In that report, analysts expect Ericsson to post earnings of $0.04 per share. This would mark a year-over-year decline of 50%. Meanwhile, the latest consensus estimate predicts the revenue to be $5.33 billion, indicating a 10.95% decrease compared to the same quarter of the previous year.
ERIC's full-year Zacks Consensus Estimates are calling for earnings of $0.42 per share and revenue of $24.03 billion. These results would represent year-over-year changes of -2.33% and -3.23%, respectively.
Investors might also notice recent changes to analyst estimates for Ericsson. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Ericsson is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Ericsson is currently exchanging hands at a Forward P/E ratio of 12.97. For comparison, its industry has an average Forward P/E of 14.37, which means Ericsson is trading at a discount to the group.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 171, finds itself in the bottom 33% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ERIC in the coming trading sessions, be sure to utilize Zacks.com.
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Ericsson (ERIC) : Free Stock Analysis Report
