Ericsson (ERIC) closed at $7.95 in the latest trading session, marking a -1.61% move from the prior day. This change was narrower than the S&P 500's daily loss of 2.81%. Elsewhere, the Dow lost 2.94%, while the tech-heavy Nasdaq lost 3%.
Coming into today, shares of the telecommunications equipment provider had gained 2.41% in the past month. In that same time, the Computer and Technology sector lost 2.16%, while the S&P 500 lost 3.97%.
ERIC will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.08, down 11.11% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.62 billion, up 5.31% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.53 per share and revenue of $24.53 billion, which would represent changes of +381.82% and +2.19%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for ERIC. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that ERIC has a Forward P/E ratio of 15.32 right now. This represents a discount compared to its industry's average Forward P/E of 19.14.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 161, putting it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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