Ericsson (ERIC) Dips More Than Broader Market: What You Should Know
Ericsson (ERIC) ended the recent trading session at $6.08, demonstrating a -1.94% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.8%. Meanwhile, the Dow experienced a drop of 0.76%, and the technology-dominated Nasdaq saw a decrease of 1.18%.
Shares of the telecommunications equipment provider witnessed a gain of 13.55% over the previous month, beating the performance of the Computer and Technology sector with its gain of 2.11% and the S&P 500's gain of 3.4%.
Investors will be eagerly watching for the performance of Ericsson in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on January 23, 2024. On that day, Ericsson is projected to report earnings of $0.14 per share, which would represent a year-over-year decline of 30%. At the same time, our most recent consensus estimate is projecting a revenue of $7.04 billion, reflecting a 12.28% fall from the equivalent quarter last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Ericsson. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 moved 5.45% higher. Ericsson is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Ericsson has a Forward P/E ratio of 13.36 right now. This expresses a premium compared to the average Forward P/E of 13.01 of its industry.
Investors should also note that ERIC has a PEG ratio of 8.85 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Wireless Equipment industry held an average PEG ratio of 1.25.
The Wireless Equipment industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 172, positioning it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Ericsson (ERIC) : Free Stock Analysis Report
