Ericsson (ERIC) closed at $8.86 in the latest trading session, marking a +0.23% move from the prior day. This move outpaced the S&P 500's daily loss of 0.02%. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.08%.
Heading into today, shares of the telecommunications equipment provider had lost 3.07% over the past month, lagging the Computer and Technology sector's gain of 4.7% and the S&P 500's gain of 3.81% in that time.
ERIC will be looking to display strength as it nears its next earnings release, which is expected to be January 24, 2020. In that report, analysts expect ERIC to post earnings of $0.16 per share. This would mark year-over-year growth of 277.78%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.95 billion, down 1.41% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.44 per share and revenue of $23.34 billion, which would represent changes of +1366.67% and -5.04%, respectively, from the prior year.
Any recent changes to analyst estimates for ERIC should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, ERIC is holding a Forward P/E ratio of 20.09. This valuation marks a discount compared to its industry's average Forward P/E of 21.44.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 57, 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.
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