Ericsson (ERIC) closed the most recent trading day at $8.47, moving +1.44% from the previous trading session. This change outpaced the S&P 500's 0.38% loss on the day. Meanwhile, the Dow lost 0.46%, and the Nasdaq, a tech-heavy index, added 0.17%.
Prior to today's trading, shares of the telecommunications equipment provider had gained 0.36% over the past month. This has outpaced the Computer and Technology sector's loss of 5.23% and the S&P 500's loss of 4.88% in that time.
Wall Street will be looking for positivity from ERIC as it approaches its next earnings report date. The company is expected to report EPS of $0.08, down 11.11% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.62 billion, up 5.31% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.53 per share and revenue of $24.53 billion, which would represent changes of +381.82% and +2.19%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for ERIC. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 past month, the Zacks Consensus EPS estimate has moved 0.47% lower. ERIC is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, ERIC currently has a Forward P/E ratio of 15.83. For comparison, its industry has an average Forward P/E of 19.06, which means ERIC is trading at a discount to the group.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 112, putting it in the top 44% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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