Ericsson (ERIC) Stock Sinks As Market Gains: What You Should Know
Ericsson (ERIC) closed the most recent trading day at $9.50, moving -0.94% from the previous trading session. This move lagged the S&P 500's daily gain of 0.21%. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq lost 0.05%.
Coming into today, shares of the telecommunications equipment provider had gained 3.79% in the past month. In that same time, the Computer and Technology sector gained 5.1%, while the S&P 500 gained 2.57%.
Wall Street will be looking for positivity from ERIC as it approaches its next earnings report date. This is expected to be April 17, 2019. The company is expected to report EPS of $0.04, up 300% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.26 billion, down 1.72% from the year-ago period.
ERIC's full-year Zacks Consensus Estimates are calling for earnings of $0.32 per share and revenue of $23.26 billion. These results would represent year-over-year changes of +966.67% and -5.37%, respectively.
Any recent changes to analyst estimates for ERIC should also be noted by investors. These revisions help to show the ever-changing nature of near-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. Within the past 30 days, our consensus EPS projection remained stagnant. ERIC is holding a Zacks Rank of #5 (Strong Sell) right now.
In terms of valuation, ERIC is currently trading at a Forward P/E ratio of 30.2. For comparison, its industry has an average Forward P/E of 24.16, which means ERIC is trading at a premium to the group.
It is also worth noting that ERIC currently has a PEG ratio of 0.72. 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 2.33 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 92, which puts it in the top 37% 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.
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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