Ericsson (ERIC) Rises Higher Than Market: Key Facts
Ericsson (ERIC) closed the latest trading day at $5.72, indicating a +0.7% change from the previous session's end. The stock exceeded the S&P 500, which registered a gain of 0.46% for the day. Elsewhere, the Dow gained 0.48%, while the tech-heavy Nasdaq added 0.7%.
Shares of the telecommunications equipment provider have appreciated by 24.02% over the course of the past month, outperforming the Computer and Technology sector's gain of 4.16% and the S&P 500's gain of 4.85%.
Investors will be eagerly watching for the performance of Ericsson in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.14, signifying a 30% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $7.04 billion, down 12.28% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.34 per share and a revenue of $24.95 billion, representing changes of -44.26% and -6.68%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Ericsson. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.75% higher. Ericsson is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Ericsson is at present trading with a Forward P/E ratio of 16.83. This denotes a premium relative to the industry's average Forward P/E of 14.96.
It's also important to note that ERIC currently trades at a PEG ratio of 11.15. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Wireless Equipment industry had an average PEG ratio of 1.29 as trading concluded yesterday.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 62, finds itself in the top 25% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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
