ERIC - Telefonaktiebolaget LM Ericsson (publ)

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
9.14
+0.18 (+2.01%)
At close: 4:00PM EDT

9.14 0.00 (0.00%)
After hours: 4:41PM EDT

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Performance Outlook
  • Short Term
    2W - 6W
  • Mid Term
    6W - 9M
  • Long Term
    9M+
Previous Close8.96
Open9.14
Bid9.14 x 40000
Ask9.18 x 39400
Day's Range8.99 - 9.14
52 Week Range6.15 - 10.06
Volume5,928,616
Avg. Volume7,817,514
Market Cap30.458B
Beta (5Y Monthly)0.26
PE Ratio (TTM)N/A
EPS (TTM)-0.72
Earnings DateN/A
Forward Dividend & Yield0.07 (0.83%)
Ex-Dividend DateApr 01, 2020
1y Target Est10.11
Fair Value is the appropriate price for the shares of a company, based on its earnings and growth rate also interpreted as when P/E Ratio = Growth Rate. Estimated return represents the projected annual return you might expect after purchasing shares in the company and holding them over the default time horizon of 5 years, based on the EPS growth rate that we have projected.
Fair Value
XX.XX
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-47% Est. Return
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  • Should Value Investors Buy Ericsson (ERIC) Stock?
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    Should Value Investors Buy Ericsson (ERIC) Stock?

    Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

  • Ericsson Shares Up 10.9% in 3 Months: What's Driving the Rally?
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    Ericsson Shares Up 10.9% in 3 Months: What's Driving the Rally?

    Ericsson (ERIC) is making progress toward building a stronger company in the long term, while investing in R&D and supply chain capacity.

  • Reuters

    Britain seeking new entrants to 5G market - PM's spokesman

    Britain set out in January that it was seeking entrants into the market for 5G telecommunications and that London is speaking to allies about it such as the United States, a spokesman for Prime Minister Boris Johnson said on Friday. "We set out in January that we were seeking new entrants into the market in order to diversify, and that is something we have been speaking with our allies about including the United States," the spokesman said. Britain is also looking at any impact new U.S. sanctions on Huawei might have.

  • Ericsson Leads the 5G Race With Smart Manufacturing Facility
    Zacks

    Ericsson Leads the 5G Race With Smart Manufacturing Facility

    Ericsson (ERIC) is working close to its customers through its American, European and Asian operations while securing fast deliveries to meet requirements.

  • Ericsson Boosts 5G Network in Sweden With Telia Partnership
    Zacks

    Ericsson Boosts 5G Network in Sweden With Telia Partnership

    Ericsson (ERIC) partners with Telia Company to deploy commercial 5G network technology in Sweden. The operator will benefit from seamless network infrastructure and better customer experience.

  • PR Newswire

    Telia Company Launches Ericsson-powered Commercial 5G in Sweden

    Swedish communications service provider Telia Company has launched commercial 5G in Stockholm powered by Ericsson (NASDAQ: ERIC) Radio Access Network (RAN) products and solutions.

  • 5 Stocks to Play the Internet Infrastructure Boom on 5G Rollout
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    5 Stocks to Play the Internet Infrastructure Boom on 5G Rollout

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  • Ericsson (ERIC) to Power 5G Radio Access Network in China
    Zacks

    Ericsson (ERIC) to Power 5G Radio Access Network in China

    The contract is likely to enable China-based carriers to seamlessly deploy 5G technology, leveraging the technological prowess of Ericsson (ERIC).

  • Ericsson Boosts 5G Network in Norway With Telia Partnership
    Zacks

    Ericsson Boosts 5G Network in Norway With Telia Partnership

    Ericsson (ERIC) partners with Telia Norway to deploy a 5G network technology, benefiting the operator with seamless network infrastructure and better customer experience.

  • Is Ericsson (ERIC) Stock Undervalued Right Now?
    Zacks

    Is Ericsson (ERIC) Stock Undervalued Right Now?

    Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

  • Somos Brings Ericsson Operations Engine to Toll-Free Number Registry
    PR Newswire

    Somos Brings Ericsson Operations Engine to Toll-Free Number Registry

    Today, Ericsson (NASDAQ: ERIC) unveiled a landmark five-year deal with Somos, administrator of the North American SMS/800 TFN Registry, to evolve the organization's SMS/800 TFN Registry application. Under the contract, Ericsson will provide Cloud-native Application Development services from Ericsson's Artificial Intelligence (AI)-powered Ericsson Operations Engine portfolio to assist the organization in managing more than 42 million Toll-Free Numbers nationwide.

  • Were Hedge Funds Right About Telefonaktiebolaget LM Ericsson (ERIC)?
    Insider Monkey

    Were Hedge Funds Right About Telefonaktiebolaget LM Ericsson (ERIC)?

    We hate to say this but, we told you so. On February 27th we published an article with the title Recession is Imminent: We Need A Travel Ban NOW and predicted a US recession when the S&P 500 Index was trading at the 3150 level. We also told you to short the market and buy […]

  • Is Telefonaktiebolaget LM Ericsson (publ) (STO:ERIC B) A Good Dividend Stock?
    Simply Wall St.

    Is Telefonaktiebolaget LM Ericsson (publ) (STO:ERIC B) A Good Dividend Stock?

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  • 3 Reasons to Be Long-Term Bullish on Ericsson Stock
    InvestorPlace

    3 Reasons to Be Long-Term Bullish on Ericsson Stock

    Since reporting its earnings last week, Ericsson (NASDAQ:ERIC) stock has not done much. But then again, there was already a nice rally ahead of the announcement. Note that the shares went from $6.17 in mid-March to $8.35.Source: Shutterstock For the first quarter, Ericsson's revenues increased by 2% to $4.93 billion. While there was considerable weakness in the digital services business, there was strength in other segments like for networks. Given that the contracts tend to be large, there are often timing issues. And yes, with the novel coronavirus pandemic, there has been some more delays with deals.But despite this, I think the long-term does look bright for Ericsson, especially with the megatrend of 5G rollouts. The fact is that the company is positioned nicely, in terms of its global infrastructure, IP (Intellectual Property) portfolio and end-to-end technologies.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Issues Looming Over Disney Stock Ahead of Earnings So let's take a deeper look at why Ericsson stock is a good play right now: CoronavirusEricsson acted swiftly to make its workforce remote. This was no easy feat as the company has about 85,000 employees. But Ericsson has set up a Crisis Management Council and has also been able to put in processes to maintain the performance of its networks. Another benefit has been that the company has a diversified sourcing infrastructure and various production sites across the worldWhile the coronavirus will weigh on growth, it is likely to be temporary. Keep in mind that the company has reiterated its financial targets for 2020 to 2022. In fact, in the second half of this year, there is likely be an increase in momentum because of the merger between T-Mobile (NASDAQ:TMUS) and Sprint. This should lead to more spending on rollouts.Ericsson also continues to report strong margins. In the latest quarter, the gross margin rose from 43.2% to 44.4%. As a result, the company continues to generate strong cash flows.Note that there is $3.81 billion in the bank. In other words, there appears to be enough liquidity for dividends, buybacks of Ericsson stock, R&D investments and acquisitions. StrategyEven though Borje Ekholm has been CEO only for a couple years, he has wasted little time in putting in place a solid strategy. He has not only been disciplined with costs but also wise in nixing low-margin contracts.But Ekholm has been effective in focusing on the right technologies to capitalize on the 5G opportunities. For example, the Digital Services segment has benefited from software sales and cloud platforms, which have provided higher margins. And as for the Managed Services unit, there have been nice gains from AI and automation systems. 5G Opportunity for Ericsson StockThe 5G market is intensely competitive, with many large operators like Qualcomm (NASDAQ:QCOM), Cisco Systems (NASDAQ:CSCO), Nokia (NYSE:NOK) and Huawei. Yet Ericsson has been able to fare pretty well, especially when it comes to winning business. For the first quarter, the company announced 86 commercial 5G contracts and completed 29 live networksWhat's more, the 5G opportunity is enormous for Ericsson stock. According ResearchAndMarkets.com, the spending is forecasted to go from $12.6 billion in 2020 to $44.9 billion by 2025, for a compound annual growth rate of nearly 29% (consider that this accounts for the estimated negative impact from the Covid-19 virus). Just some of the drivers for the growth include the adoption of IoT (Internet-of-Things) devices, the rise in automation and the continued growth in data traffic.In the Ericsson annual report, Ekholm writes: "But 5G is much more than enhanced mobility for consumers. This is an innovation platform so powerful that it will be the driving force behind the next big shift in society - the fourth industrial revolution. By 2025, we expect the number of cellular IoT connections to reach 5 billion. This shift will impact all sectors, potentially increasing the addressable opportunity for telecom operators by up to 30% by 2030."Tom Taulli (@ttaulli) is the author of various books on investing and technology, including Artificial Intelligence Basics, High-Profit IPO Strategies and All About Short Selling. He is also the founder of WebIPO, which was one of the first platforms for public offerings during the 1990s. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * America's 1 Stock Picker Reveals Next 1,000% Winner * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post 3 Reasons to Be Long-Term Bullish on Ericsson Stock appeared first on InvestorPlace.

  • Bloomberg

    Ericsson Seeks Bids for $2 Billion Sale of Iconectiv

    (Bloomberg) -- Ericsson AB, the communications equipment supplier, has started a sale process for Iconectiv, its U.S. call routing unit, people familiar with the matter said.The telecom infrastructure company is working with an adviser on the potential divestment, the people said, asking not to be identified because the information is private. Bidders include several private equity firms, the people said. The unit could fetch about $1.5 billion to $2 billion, one of them said.Activist investor Cevian Capital, which is Ericsson’s largest shareholder, has demanded several strategic moves including a full divestment of the business.No final decisions have been made, and Ericsson could decide to keep the unit, the people said. A representative for Ericsson declined to comment.Ericsson acquired Iconectiv, formerly known as Telcordia, in early 2012 for more than $1 billion. In 2017, California-based private equity firm Francisco Partners bought 16.7% of the business for $200 million.Under current chief executive officer Borje Ekholm’s tenure, Ericsson has focused on its core radio-equipment business, and improved profitability by exiting loss-making contracts and divesting businesses that were added in earlier attempts to diversify.Iconectiv develops solutions that enable operators to connect networks. Its services are used by more than 1,200 customers including service providers, regulators and enterprises worldwide, according to its website. The company also provides numbering solutions, which allows users keep their numbers when switching providers, and works with clients including the U.S. Federal Communications Commission.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • 5G ready: Watch Communications chooses Ericsson to provide Evolved Packet Core
    PR Newswire

    5G ready: Watch Communications chooses Ericsson to provide Evolved Packet Core

    Watch Communications and Ericsson (NASDAQ: ERIC) have partnered to make rural areas of the Midwest 5G ready. As part of this effort, Watch Communications has chosen Ericsson to deliver 3GPP-standardized Evolved Packet Core to markets in Ohio, Indiana, Illinois, and Kentucky.

  • Ericsson-True Partnership to Power Thailand 5G Ecosystem
    Zacks

    Ericsson-True Partnership to Power Thailand 5G Ecosystem

    Ericsson (ERIC) collaborates with True Corporation to deploy avant-garde 5G network, benefiting the latter with seamless network infrastructure and better customer experience.

  • PR Newswire

    VodafoneZiggo Launches 5G With Ericsson Spectrum Sharing

    Ericsson and VodafoneZiggo switch on 5G, driving digitization in the competitive Dutch market

  • Are Investors Undervaluing Ericsson (ERIC) Right Now?
    Zacks

    Are Investors Undervaluing Ericsson (ERIC) Right Now?

    Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

  • Cevian Capital trims Ericsson stake to 7.4%
    Reuters

    Cevian Capital trims Ericsson stake to 7.4%

    Activist investor Cevian Capital has trimmed its holding in Sweden's Ericsson to 7.4% of share capital, saying the telecom equipment maker's share of Cevian's portfolio had become too large. A filing with the U.S. Securities and Exchange Commission on Friday showed Cevian had cut its stake by about 34 million B-shares and now held 246.9 million B-shares and 339,228 A-shares in Ericsson. Cevian previously held an 8.4% stake in Ericsson.

  • Top Analysts: These 3 Stocks Are Poised to Ride the 5G Wave
    TipRanks

    Top Analysts: These 3 Stocks Are Poised to Ride the 5G Wave

    The economy has ground to a halt, for now, and there is plenty of debate on when and how the recovery will come, but one thing is certain: there will be change. Many of the changes will likely involve the way we work and communicate – the ‘social distancing’ policies in place have forced many white-collar workers to move their workspace from the office to the home, and increased the demands on the nation’s networking infrastructure and internet access plans.Lower costs and latency will be in high demand, even as the workforce hopfully returns to normal in 2H20. It’s likely that many companies will opt to keep at least some of their employees working by remote, and it is also likely that schools and universities will continue making use of remote learning. Even without that, however, the home quarantines have pushed a large part of the population to start using multiple devices simultaneously in the home – and they are likely to continue that habit.Those are changes which, ironically, may be coming at just the right time. 5G digital technology, the next generation in digital and wireless connectivity, will more deeply ingrain these new changes, by making the networks more effective.In his white paper on the coming 5G switchover, 5-star analyst Timothy Horan, of Oppenheimer, puts the bottom line right at the top: “5G will increase wireless capacity 10x and reduce latency by 1/10th, while lowering operating expenses.” Horan sees wifi as the wave of the future, as it has the capacity to meet a wide variety of needs in a single digital network. He writes, “Consumers require only mobile broadband, with all applications over the top (OTT). We expect fixed wireless households to grow from 6 million to 23 million.”Specifically, Horan believes that the emergence of 5G will push a merging of wireless and cable-based infrastructures, a mixing of the cloud and traditional software system that he calls ‘Fog.’ In Horan’s words, “We are seeing convergence between wireless and wireline and cloud and communication networks, and this will create a new edge-based Fog infrastructure. This will in turn drive lower costs and lower latency…”For investors, this means that there will be stock opportunities as 5G comes online and fully develops its market potential. Companies will have to build the towers, expand the infrastructure, design and market 5G modems and other hardware. And every item on that list is another chance for investors to spot a company making profits in 5G.We’ve used TipRanks' database to find three stocks positioned to gain in the 5G world -- at least according to Wall Street's top-rated analysts. Two are on the cusp of takeoff; one is already off the ground.Telefonakiebolaget LM Ericsson (ERIC)You know about Ericsson. The Swedish company is one of the storied names in the telecom world, especially in the area of mobile technology. Ericsson is also one of the 5G pioneers, and has live commercial 5G operations in Europe, Asia, and the Americas. The company is involved in 31 of new networks, in 17 countries, producing 5G capable handsets, creating business platforms that allow IoT and industrial expansion via 5G expansion, and creating networks with enhanced connectivity for all applications.On the financial front, ERIC finished 2019 with 4% year-over-year sales growth. The top line came in at $22.5 billion. Q1 results, reported earlier this week, were disappointing – but that was expected in the wake of COVID-19 disruptions. EPS was below expectations and fell 22% yoy, to just 7 cents, while quarterly revenues came in at $5.124 billion, down 4.7% you and also below estimates.Even with that quarterly performance, ERIC shares were recently upgraded by 5-star Cowen analyst Paul Silverstein. He bumped the stock from Neutral to Buy, and his $10 price target indicates his belief in a 25% upside potential. (To watch Silverstein’s track record, click here)In his comments, Silverstein justifies his upgrade: “We expect little, if any, adverse impact from COVID-19 on service provider demand in CY20; rather, we've seen a number of datapoints indicating robust—actually a surge in—bandwidth consumption related to COVID-19…” Looking ahead at 5G, Silverstein adds, “We expect ERIC to gain market share in 5G driven by ongoing competitive challenges at NOK due to cost structure issues related to ongoing technical challenges and at Huawei due to ongoing geopolitical issues, with the latter we think further exacerbated by the COVID-19 crisis.”Wall Street clearly agrees that ERIC shares have a bright future; the stock has 5 Buy ratings, making the Strong Buy analyst consensus rating a unanimous decision. The stock is selling for $8.04, and the $10.50 average price target suggests it has room for 31% upside in the coming 12 months. (See Ericsson stock analysis on TipRanks)Tower Semiconductor (TSEM)From networking, we move to the semiconductor chip industry. Tower is a fabricator, manufacturing a wide range of chips for the bigger-name chip companies. Among Tower’s customers are some of the best-known names in semiconductor space: Broadcom, Intel, Samsung, Skyworks. Tower has 7 fabrication facilities, located in California, Texas, Israel, and Japan.The success of 5G will depend, in part, on the reliability of the processor chips behind it. Tower is expanding its capacity to produce the 200mm and 300mm capable chips that are in growing demand for 5G compatible handsets. In addition, the company is pursuing new development in existing technologies, including Silicon Germanium and Silicon-on-Insulator, to improve the manufacture of 5G capable network chips. Tower is developing the chips that will relieve the congestion of the 5G spectrum, and allow service providers to exploit the full capabilities of the new networks.Like other companies involved in 5G, Tower expects its business to expand in 2H20, as economies begin to reopen. Every piece of hardware in the new network systems will require multiple semiconductor chips, and fabricator like Tower, which has been involved in 5G for the last two years, and works with the major brand names in the industry, is ideally positioned to gain from that demand.Needham analyst Rajvindra Gill, ranked 5-stars by TipRanks, sees two major factors giving Tower Semiconductor a boost. First, he says “there have been no interruptions with major supply chain materials or any changes to air and sea freight lines. Its factories are spread throughout the globe, minimizing potential future disruptions.” And looking ahead, Gill writes, “We view TSEM as a key beneficiary of the 5G cycle, both on the smartphone & infrastructure side. 5G RF switches and LNAs in handsets are built on high end RF SOI technology, TSEM's sweet spot.”Gill maintains his Buy rating on TSEM shares, while his price target, at $27, suggests that the stock has room to grow an impressive 51%. (To watch Gill’s track record, click here)Tower’s analyst consensus rating is a Moderate Buy, based on 3 recent reviews that include 2 Buys and 1 Hold. The average price target is $24.73, which indicates a robust 39% premium from current levels. (See TSEM's stock analysis on TipRanks)Inseego Corporation (INSG)The last stock on our list, Inseego, is one of the relatively few companies to have seen heavy stock gains over the past three months. INSG shares have gained 35% since the bottom fell out of the markets at the end of February, with most of that gain coming in a sharp spike that started in the first week of this month.That share price spike came after Inseego, which specializes in solutions for mobile wireless systems and hotspots, announced a surge in production to meet increased demand. The company’s products are a range of modems, routers, and mobile hotspot devices, and they are now in high demand as tens of millions of workers are making remote connections with their offices. Inseego's devices are quickly becoming an integral part of the emerging nationwide 5G network, whose capability enhancements over existing 4G is also in high demand. In short, the COVID-19 economic restrictions, which have been so devastating for most companies, have given a great windfall to Inseego.Looking ahead, Inseego has continued clear prospects. The company’s MiFi 1000 portable hotspot device is used by Verizon to expand mobile broadband on the 5G networks.Canaccord's 5-star analyst Michael Walkley very clearly lays out the case for INSG stock: “The increasing number of people working and studying from home is driving strong demand for Inseego’s current products. We also believe Inseego has strong global customer engagements for its growing 5G product lines spanning mobile, enterprise IoT and fixed wireless access. While Inseego launched the industry’s first 5G mobile hotspot with its 5G MiFi M1000 at Verizon, next generation MiFi products with Qualcomm’s X55 modems should drive continued strong demand for Inseego’s ramping global 5G sales.”Walkley puts a $14 price target on the shares, showing his confidence in a 14% upside for Inseego, and backing his Buy rating on the stock. (To watch Walkley’s track record, click here)Inseego’s strong share price performance and sound prospects have brought it a unanimous verdict from Wall Street’s analyst consensus: A Strong Buy, based on 5 recent reviews. Shares are currently trading at $12.47, and the recent price spike pushed INSG right through its average price target. The analyst corps hasn’t yet adjusted their outlook – but expect to see pride target adjustments here in the near future. (See Inseego stock analysis on TipRanks)To find good ideas for 5G stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

  • Ericsson Supports ABB Power Grid With Modern 5G Connectivity
    Zacks

    Ericsson Supports ABB Power Grid With Modern 5G Connectivity

    Ericsson (ERIC) will deploy its 5G-ready Industry Connect technology for smart factory connectivity in ABB Power Grid as part of the latter's digitization process.

  • PR Newswire

    Ericsson's Nomination Committee Appointed

    Ericsson's (NASDAQ:ERIC) Nomination Committee for the Annual General Meeting 2021 has been appointed in accordance with the Instruction for the Nomination Committee resolved by the Annual General Meeting 2012.