Ericsson (ERIC) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Ericsson (ERIC) closed at $13.10, marking a -0.61% move from the previous day. This change lagged the S&P 500's 0.18% gain on the day.
Heading into today, shares of the telecommunications equipment provider had lost 0.6% over the past month, lagging the Computer and Technology sector's gain of 6.46% and the S&P 500's gain of 2.43% 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 $0.14 per share. This would mark year-over-year growth of 40%. Our most recent consensus estimate is calling for quarterly revenue of $6.65 billion, up 15.83% from the year-ago period.
ERIC's full-year Zacks Consensus Estimates are calling for earnings of $0.78 per share and revenue of $28.53 billion. These results would represent year-over-year changes of +21.88% and +12.07%, respectively.
Investors might also notice recent changes to analyst estimates for ERIC. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ERIC is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that ERIC has a Forward P/E ratio of 17.01 right now. This valuation marks a discount compared to its industry's average Forward P/E of 20.31.
We can also see that ERIC currently has a PEG ratio of 1.9. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Wireless Equipment was holding an average PEG ratio of 2.29 at yesterday's closing price.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 171, putting it in the bottom 33% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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