Ericsson (ERIC) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Ericsson (ERIC) closed the most recent trading day at $6.05, moving -0.82% from the previous trading session. This move lagged the S&P 500's daily loss of 0.56%. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.59%.
Heading into today, shares of the telecommunications equipment provider had gained 0.16% over the past month, lagging the Computer and Technology sector's gain of 1.27% and the S&P 500's gain of 1.2% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Ericsson in its upcoming earnings disclosure. The company's earnings report is set to go public on January 23, 2024. The company's upcoming EPS is projected at $0.14, signifying a 30% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $7.04 billion, showing a 12.28% drop compared to the year-ago quarter.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Ericsson. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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, there's been a 0.43% rise in the Zacks Consensus EPS estimate. As of now, Ericsson holds a Zacks Rank of #2 (Buy).
Investors should also note Ericsson's current valuation metrics, including its Forward P/E ratio of 13.09. This indicates a discount in contrast to its industry's Forward P/E of 14.25.
Investors should also note that ERIC has a PEG ratio of 8.67 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Wireless Equipment industry was having an average PEG ratio of 1.43.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 39% 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.
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
