Ericsson (ERIC) closed the most recent trading day at $8.07, moving -0.49% from the previous trading session. This change was narrower than the S&P 500's daily loss of 2.6%. Meanwhile, the Dow lost 2.37%, and the Nasdaq, a tech-heavy index, lost 3%.
Prior to today's trading, shares of the telecommunications equipment provider had lost 8.77% over the past month. This has lagged the Computer and Technology sector's loss of 2.19% and the S&P 500's loss of 1.84% 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 $0.08 per share. This would mark a year-over-year decline of 33.33%. Meanwhile, our latest consensus estimate is calling for revenue of $6.12 billion, down 4.61% from the prior-year quarter.
ERIC's full-year Zacks Consensus Estimates are calling for earnings of $0.36 per share and revenue of $23.95 billion. These results would represent year-over-year changes of +1100% and -2.55%, respectively.
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. 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ERIC is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that ERIC has a Forward P/E ratio of 22.68 right now. This represents a premium compared to its industry's average Forward P/E of 22.38.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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