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Ericsson (ERIC) Gains As Market Dips: What You Should Know
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In the latest trading session, Ericsson (ERIC - Free Report) closed at $11.95, marking a +1.53% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.22%. Elsewhere, the Dow lost 0.23%, while the tech-heavy Nasdaq lost 0.38%.
Coming into today, shares of the telecommunications equipment provider had lost 3.84% in the past month. In that same time, the Computer and Technology sector gained 5.2%, while the S&P 500 gained 2.78%.
ERIC will be looking to display strength as it nears its next earnings release, which is expected to be January 29, 2021. On that day, ERIC is projected to report earnings of $0.21 per share, which would represent 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.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.59 per share and revenue of $24.78 billion. These totals would mark changes of +436.36% and +3.24%, respectively, from last year.
Any recent changes to analyst estimates for ERIC should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection remained stagnant. ERIC currently has a Zacks Rank of #4 (Sell).
Looking at its valuation, ERIC is holding a Forward P/E ratio of 20.12. This represents a discount compared to its industry's average Forward P/E of 21.75.
Investors should also note that ERIC has a PEG ratio of 0.7 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Wireless Equipment stocks are, on average, holding a PEG ratio of 2.47 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 31% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Ericsson (ERIC) Gains As Market Dips: What You Should Know
In the latest trading session, Ericsson (ERIC - Free Report) closed at $11.95, marking a +1.53% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.22%. Elsewhere, the Dow lost 0.23%, while the tech-heavy Nasdaq lost 0.38%.
Coming into today, shares of the telecommunications equipment provider had lost 3.84% in the past month. In that same time, the Computer and Technology sector gained 5.2%, while the S&P 500 gained 2.78%.
ERIC will be looking to display strength as it nears its next earnings release, which is expected to be January 29, 2021. On that day, ERIC is projected to report earnings of $0.21 per share, which would represent 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.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.59 per share and revenue of $24.78 billion. These totals would mark changes of +436.36% and +3.24%, respectively, from last year.
Any recent changes to analyst estimates for ERIC should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection remained stagnant. ERIC currently has a Zacks Rank of #4 (Sell).
Looking at its valuation, ERIC is holding a Forward P/E ratio of 20.12. This represents a discount compared to its industry's average Forward P/E of 21.75.
Investors should also note that ERIC has a PEG ratio of 0.7 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Wireless Equipment stocks are, on average, holding a PEG ratio of 2.47 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 31% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.