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Ericsson (ERIC) Gains As Market Dips: What You Should Know
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Ericsson (ERIC - Free Report) closed the most recent trading day at $11.71, moving +0.43% from the previous trading session. This change outpaced the S&P 500's 0.44% loss on the day. Meanwhile, the Dow lost 0.62%, and the Nasdaq, a tech-heavy index, added 0.5%.
Coming into today, shares of the telecommunications equipment provider had lost 1.19% in the past month. In that same time, the Computer and Technology sector gained 4.57%, while the S&P 500 gained 2.71%.
Investors will be hoping for strength from ERIC as it approaches its next earnings release, which is expected to be January 29, 2021. In that report, analysts expect ERIC to post earnings of $0.21 per share. This would mark year-over-year growth of 40%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.42 billion, up 7.44% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.59 per share and revenue of $24.78 billion, which would represent changes of +436.36% and +3.24%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for ERIC. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. ERIC is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, ERIC currently has a Forward P/E ratio of 19.93. Its industry sports an average Forward P/E of 21.28, so we one might conclude that ERIC is trading at a discount comparatively.
We can also see that ERIC currently has a PEG ratio of 0.69. 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 2.45 at yesterday's closing price.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 29% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Ericsson (ERIC) Gains As Market Dips: What You Should Know
Ericsson (ERIC - Free Report) closed the most recent trading day at $11.71, moving +0.43% from the previous trading session. This change outpaced the S&P 500's 0.44% loss on the day. Meanwhile, the Dow lost 0.62%, and the Nasdaq, a tech-heavy index, added 0.5%.
Coming into today, shares of the telecommunications equipment provider had lost 1.19% in the past month. In that same time, the Computer and Technology sector gained 4.57%, while the S&P 500 gained 2.71%.
Investors will be hoping for strength from ERIC as it approaches its next earnings release, which is expected to be January 29, 2021. In that report, analysts expect ERIC to post earnings of $0.21 per share. This would mark year-over-year growth of 40%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.42 billion, up 7.44% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.59 per share and revenue of $24.78 billion, which would represent changes of +436.36% and +3.24%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for ERIC. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. ERIC is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, ERIC currently has a Forward P/E ratio of 19.93. Its industry sports an average Forward P/E of 21.28, so we one might conclude that ERIC is trading at a discount comparatively.
We can also see that ERIC currently has a PEG ratio of 0.69. 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 2.45 at yesterday's closing price.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 29% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.