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Ericsson (ERIC) Outpaces Stock Market Gains: What You Should Know

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Ericsson (ERIC - Free Report) closed at $10.90 in the latest trading session, marking a +0.46% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.05%. Meanwhile, the Dow gained 0.48%, and the Nasdaq, a tech-heavy index, lost 0.61%.

Heading into today, shares of the telecommunications equipment provider had lost 8.67% over the past month, lagging the Computer and Technology sector's gain of 0.29% and the S&P 500's loss of 0.52% in that time.

Wall Street will be looking for positivity from ERIC as it approaches its next earnings report date. On that day, ERIC is projected to report earnings of $0.17 per share, which would represent year-over-year growth of 189.47%. Our most recent consensus estimate is calling for quarterly revenue of $6.41 billion, up 7.61% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.57 per share and revenue of $25.11 billion, which would represent changes of +418.18% and +4.63%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for ERIC. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.35% higher. ERIC is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, ERIC is currently trading at a Forward P/E ratio of 19.2. This represents a premium compared to its industry's average Forward P/E of 18.47.

Also, we should mention that ERIC has a PEG ratio of 0.73. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ERIC's industry had an average PEG ratio of 1.79 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 124, which puts it in the top 49% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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