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Ericsson (ERIC) Dips More Than Broader Markets: What You Should Know
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Ericsson (ERIC - Free Report) closed at $11.73 in the latest trading session, marking a -1.44% move from the prior day. This change lagged the S&P 500's daily loss of 0.39%. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq lost 0.1%.
Prior to today's trading, shares of the telecommunications equipment provider had lost 1.9% over the past month. This has lagged the Computer and Technology sector's gain of 7.06% and the S&P 500's gain of 4.06% in that time.
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%. Our most recent consensus estimate is calling for quarterly revenue 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 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. 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 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. ERIC is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note ERIC's current valuation metrics, including its Forward P/E ratio of 20.34. Its industry sports an average Forward P/E of 22.53, so we one might conclude that ERIC is trading at a discount comparatively.
Investors should also note that ERIC has a PEG ratio of 0.7 right now. 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 2.5 as of yesterday's close.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% 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.
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) Dips More Than Broader Markets: What You Should Know
Ericsson (ERIC - Free Report) closed at $11.73 in the latest trading session, marking a -1.44% move from the prior day. This change lagged the S&P 500's daily loss of 0.39%. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq lost 0.1%.
Prior to today's trading, shares of the telecommunications equipment provider had lost 1.9% over the past month. This has lagged the Computer and Technology sector's gain of 7.06% and the S&P 500's gain of 4.06% in that time.
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%. Our most recent consensus estimate is calling for quarterly revenue 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 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. 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 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. ERIC is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note ERIC's current valuation metrics, including its Forward P/E ratio of 20.34. Its industry sports an average Forward P/E of 22.53, so we one might conclude that ERIC is trading at a discount comparatively.
Investors should also note that ERIC has a PEG ratio of 0.7 right now. 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 2.5 as of yesterday's close.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.