Ericsson (ERIC) Stock Slides as Market Rises: Facts to Know Before You Trade
Ericsson (ERIC) closed the latest trading day at $6.33, indicating a -0.16% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.04%. Elsewhere, the Dow saw an upswing of 0.14%, while the tech-heavy Nasdaq depreciated by 0.03%.
The telecommunications equipment provider's shares have seen an increase of 26.55% over the last month, surpassing the Computer and Technology sector's gain of 4.9% and the S&P 500's gain of 5.28%.
The investment community will be paying close attention to the earnings performance of Ericsson in its upcoming release. The company's upcoming EPS is projected at $0.14, signifying a 30% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $7.04 billion, indicating a 12.28% decline compared to the corresponding quarter of the prior year.
ERIC's full-year Zacks Consensus Estimates are calling for earnings of $0.34 per share and revenue of $24.95 billion. These results would represent year-over-year changes of -44.26% and -6.68%, respectively.
Any recent changes to analyst estimates for Ericsson should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.75% higher. Ericsson currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Ericsson is at present trading with a Forward P/E ratio of 18.78. This denotes a premium relative to the industry's average Forward P/E of 14.41.
Investors should also note that ERIC has a PEG ratio of 12.44 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Wireless Equipment was holding an average PEG ratio of 1.29 at yesterday's closing price.
The Wireless Equipment industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 150, positioning it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank is ordered 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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Ericsson (ERIC) : Free Stock Analysis Report
