Ericsson (ERIC - Free Report) closed the most recent trading day at $4.84, moving +1.68% from the previous trading session. This change outpaced the S&P 500's 1.37% loss on the day. At the same time, the Dow lost 1.29%, and the tech-heavy Nasdaq lost 1.87%.
Prior to today's trading, shares of the telecommunications equipment provider had lost 7.39% over the past month. This has lagged the Computer and Technology sector's loss of 4.68% and the S&P 500's loss of 4.93% in that time.
Ericsson will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.07, down 56.25% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.39 billion, down 1.04% from the year-ago period.
ERIC's full-year Zacks Consensus Estimates are calling for earnings of $0.31 per share and revenue of $26.42 billion. These results would represent year-over-year changes of -49.18% and -1.19%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Ericsson currently has a Zacks Rank of #3 (Hold).
Investors should also note Ericsson's current valuation metrics, including its Forward P/E ratio of 15.16. For comparison, its industry has an average Forward P/E of 12.61, which means Ericsson is trading at a premium to the group.
We can also see that ERIC currently has a PEG ratio of 7.43. 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. The Wireless Equipment was holding an average PEG ratio of 1.33 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 173, putting it in the bottom 32% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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Ericsson (ERIC - Free Report) closed the most recent trading day at $4.84, moving +1.68% from the previous trading session. This change outpaced the S&P 500's 1.37% loss on the day. At the same time, the Dow lost 1.29%, and the tech-heavy Nasdaq lost 1.87%.
Prior to today's trading, shares of the telecommunications equipment provider had lost 7.39% over the past month. This has lagged the Computer and Technology sector's loss of 4.68% and the S&P 500's loss of 4.93% in that time.
Ericsson will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.07, down 56.25% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.39 billion, down 1.04% from the year-ago period.
ERIC's full-year Zacks Consensus Estimates are calling for earnings of $0.31 per share and revenue of $26.42 billion. These results would represent year-over-year changes of -49.18% and -1.19%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Ericsson currently has a Zacks Rank of #3 (Hold).
Investors should also note Ericsson's current valuation metrics, including its Forward P/E ratio of 15.16. For comparison, its industry has an average Forward P/E of 12.61, which means Ericsson is trading at a premium to the group.
We can also see that ERIC currently has a PEG ratio of 7.43. 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. The Wireless Equipment was holding an average PEG ratio of 1.33 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 173, putting it in the bottom 32% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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