Ericsson (ERIC) Stock Sinks As Market Gains: What You Should Know
Ericsson (ERIC) closed at $10.49 in the latest trading session, marking a -0.85% move from the prior day. This change lagged the S&P 500's 0.3% gain on the day. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq added 0.37%.
Heading into today, shares of the telecommunications equipment provider had lost 11.91% over the past month, lagging the Computer and Technology sector's loss of 5.52% and the S&P 500's loss of 5.02% in that time.
Investors will be hoping for strength from ERIC as it approaches 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 $6.52 billion, up 9.41% from the prior-year quarter.
ERIC's full-year Zacks Consensus Estimates are calling for earnings of $0.56 per share and revenue of $25.20 billion. These results would represent year-over-year changes of +409.09% and +5%, respectively.
It is also important to note the recent changes to analyst estimates for ERIC. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. The Zacks Consensus EPS estimate has moved 0.44% lower within the past month. ERIC currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that ERIC has a Forward P/E ratio of 18.81 right now. This represents a discount compared to its industry's average Forward P/E of 19.61.
We can also see that ERIC currently has a PEG ratio of 0.72. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. ERIC's industry had an average PEG ratio of 1.73 as of yesterday's close.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 191, which puts it in the bottom 25% 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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