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Ericsson (ERIC) Stock Moves -0.93%: What You Should Know

Zacks Equity Research
·3 mins read

Ericsson (ERIC) closed at $10.67 in the latest trading session, marking a -0.93% move from the prior day. This change was narrower than the S&P 500's 1.4% loss on the day. Meanwhile, the Dow lost 1.34%, and the Nasdaq, a tech-heavy index, lost 1.57%.

Prior to today's trading, shares of the telecommunications equipment provider had lost 4.35% over the past month. This has lagged the Computer and Technology sector's loss of 0.17% and the S&P 500's loss of 0.46% in that time.

ERIC will be looking to display strength as it nears its next earnings release. In that report, analysts expect ERIC to post earnings of $0.17 per share. This would mark year-over-year growth of 189.47%. Our most recent consensus estimate is calling for quarterly revenue of $6.52 billion, up 9.41% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.56 per share and revenue of $25.28 billion, which would represent changes of +409.09% and +5.31%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for ERIC. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.44% lower within the past month. ERIC is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, ERIC currently has a Forward P/E ratio of 19.15. This valuation marks a discount compared to its industry's average Forward P/E of 19.17.

Meanwhile, ERIC's PEG ratio is currently 0.73. 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 was holding an average PEG ratio of 1.78 at yesterday's closing price.

The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 200, which puts it in the bottom 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ERIC in the coming trading sessions, be sure to utilize Zacks.com.


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