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Ericsson (ERIC) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

Ericsson (ERIC) closed the most recent trading day at $9.20, moving -0.97% from the previous trading session. This change lagged the S&P 500's 0.04% loss on the day. At the same time, the Dow lost 0.1%, and the tech-heavy Nasdaq gained 0.05%.

Heading into today, shares of the telecommunications equipment provider had gained 1.64% over the past month, lagging the Computer and Technology sector's gain of 2.54% and the S&P 500's gain of 2.48% in that time.

Investors will be hoping for strength from ERIC as it approaches its next earnings release. On that day, ERIC is projected to report earnings of $0.16 per share, which would represent year-over-year growth of 277.78%. Our most recent consensus estimate is calling for quarterly revenue of $6.95 billion, down 1.41% from the year-ago period.

ERIC's full-year Zacks Consensus Estimates are calling for earnings of $0.44 per share and revenue of $23.34 billion. These results would represent year-over-year changes of +1366.67% and -5.04%, respectively.

Investors should also note any recent changes to analyst estimates for ERIC. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. ERIC is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, ERIC is holding a Forward P/E ratio of 21.11. This valuation marks a discount compared to its industry's average Forward P/E of 21.41.

The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 58, which puts it in the top 23% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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