Ericsson (ERIC) Increases Despite Market Slip: Here's What You Need to Know
In the latest market close, Ericsson (ERIC) reached $5.55, with a +1.65% movement compared to the previous day. The stock outpaced the S&P 500's daily loss of 0.39%. On the other hand, the Dow registered a loss of 0.19%, and the technology-centric Nasdaq decreased by 0.59%.
Heading into today, shares of the telecommunications equipment provider had gained 18.44% over the past month, outpacing the Computer and Technology sector's gain of 6.19% and the S&P 500's gain of 5.08% in that time.
The investment community will be closely monitoring the performance of Ericsson in its forthcoming earnings report. The company is forecasted to report an EPS of $0.14, showcasing a 30% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $7.06 billion, reflecting a 12.04% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $0.15 per share and a revenue of $24.96 billion, demonstrating changes of -75.41% and -6.64%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Ericsson. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has shifted 1.32% upward. Right now, Ericsson possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Ericsson is holding a Forward P/E ratio of 35.46. Its industry sports an average Forward P/E of 14.37, so one might conclude that Ericsson is trading at a premium comparatively.
Meanwhile, ERIC's PEG ratio is currently 17.38. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Wireless Equipment stocks are, on average, holding a PEG ratio of 1.26 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 63, this industry ranks in the top 25% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Ericsson (ERIC) : Free Stock Analysis Report
