Ericsson (ERIC) Gains As Market Dips: What You Should Know
Ericsson (ERIC) closed at $11.03 in the latest trading session, marking a +1.47% move from the prior day. This change outpaced the S&P 500's 0.84% loss on the day. Elsewhere, the Dow lost 0.47%, while the tech-heavy Nasdaq lost 1.27%.
Heading into today, shares of the telecommunications equipment provider had lost 6.29% over the past month, lagging the Computer and Technology sector's gain of 0.69% and the S&P 500's gain of 0.6% in that time.
ERIC will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.17, up 189.47% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.41 billion, up 7.61% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.56 per share and revenue of $25.11 billion, which would represent changes of +409.09% and +4.63%, respectively, from the prior year.
Any recent changes to analyst estimates for ERIC should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.44% lower. ERIC currently has a Zacks Rank of #3 (Hold).
In terms of valuation, ERIC is currently trading at a Forward P/E ratio of 19.32. This valuation marks a discount compared to its industry's average Forward P/E of 20.19.
Meanwhile, ERIC's PEG ratio is currently 0.74. 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. Wireless Equipment stocks are, on average, holding a PEG ratio of 1.81 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 175, which puts it in the bottom 32% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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