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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 $11.90, moving +0.68% from the previous trading session. This change outpaced the S&P 500's 0.58% loss on the day.
Heading into today, shares of the telecommunications equipment provider had gained 2.69% over the past month, outpacing the Computer and Technology sector's gain of 2.42% and the S&P 500's gain of 2.07% in that time.
ERIC will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.19, down 5% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.89 billion, up 6.33% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.72 per share and revenue of $27.54 billion. These totals would mark changes of +12.5% and +8.2%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for ERIC. These revisions help to show the ever-changing nature of 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. 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.
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 a Zacks Rank #4 (Sell).
Investors should also note ERIC's current valuation metrics, including its Forward P/E ratio of 16.53. Its industry sports an average Forward P/E of 22.19, so we one might conclude that ERIC is trading at a discount comparatively.
Also, we should mention that ERIC has a PEG ratio of 9.9. 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 3.29 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 76, putting it in the top 30% 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) Gains As Market Dips: What You Should Know
Ericsson (ERIC - Free Report) closed the most recent trading day at $11.90, moving +0.68% from the previous trading session. This change outpaced the S&P 500's 0.58% loss on the day.
Heading into today, shares of the telecommunications equipment provider had gained 2.69% over the past month, outpacing the Computer and Technology sector's gain of 2.42% and the S&P 500's gain of 2.07% in that time.
ERIC will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.19, down 5% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.89 billion, up 6.33% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.72 per share and revenue of $27.54 billion. These totals would mark changes of +12.5% and +8.2%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for ERIC. These revisions help to show the ever-changing nature of 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. 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.
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 a Zacks Rank #4 (Sell).
Investors should also note ERIC's current valuation metrics, including its Forward P/E ratio of 16.53. Its industry sports an average Forward P/E of 22.19, so we one might conclude that ERIC is trading at a discount comparatively.
Also, we should mention that ERIC has a PEG ratio of 9.9. 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 3.29 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 76, putting it in the top 30% 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.