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Ericsson (ERIC) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Ericsson (ERIC - Free Report) closed at $11.86, marking a -1.66% move from the previous day. This change lagged the S&P 500's 0.66% loss on the day. Elsewhere, the Dow lost 0.29%, while the tech-heavy Nasdaq lost 1.25%.
Prior to today's trading, shares of the telecommunications equipment provider had lost 1.71% over the past month. This has lagged the Computer and Technology sector's gain of 3.38% and the S&P 500's gain of 3.42% in that time.
ERIC will be looking to display strength as it nears its next earnings release, which is expected to be January 29, 2021. The company is expected to report EPS of $0.21, up 40% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.42 billion, up 7.44% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for ERIC. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.98% lower. ERIC is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that ERIC has a Forward P/E ratio of 15.92 right now. This valuation marks a discount compared to its industry's average Forward P/E of 19.84.
Investors should also note that ERIC has a PEG ratio of 0.55 right now. 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. The Wireless Equipment industry currently had an average PEG ratio of 2.27 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 100, which puts it in the top 40% 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
In the latest trading session, Ericsson (ERIC - Free Report) closed at $11.86, marking a -1.66% move from the previous day. This change lagged the S&P 500's 0.66% loss on the day. Elsewhere, the Dow lost 0.29%, while the tech-heavy Nasdaq lost 1.25%.
Prior to today's trading, shares of the telecommunications equipment provider had lost 1.71% over the past month. This has lagged the Computer and Technology sector's gain of 3.38% and the S&P 500's gain of 3.42% in that time.
ERIC will be looking to display strength as it nears its next earnings release, which is expected to be January 29, 2021. The company is expected to report EPS of $0.21, up 40% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.42 billion, up 7.44% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for ERIC. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.98% lower. ERIC is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that ERIC has a Forward P/E ratio of 15.92 right now. This valuation marks a discount compared to its industry's average Forward P/E of 19.84.
Investors should also note that ERIC has a PEG ratio of 0.55 right now. 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. The Wireless Equipment industry currently had an average PEG ratio of 2.27 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 100, which puts it in the top 40% 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.