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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 $5.16, marking a +0.19% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.16%. Meanwhile, the Dow lost 0.48%, and the Nasdaq, a tech-heavy index, added 0.11%.
Heading into today, shares of the telecommunications equipment provider had gained 3% over the past month, outpacing the Computer and Technology sector's loss of 1.79% and the S&P 500's loss of 1.25% in that time.
Investors will be hoping for strength from Ericsson as it approaches its next earnings release. On that day, Ericsson is projected to report earnings of $0.07 per share, which would represent a year-over-year decline of 56.25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.39 billion, down 1.01% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.31 per share and revenue of $26.42 billion, which would represent changes of -49.18% and -1.18%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Ericsson. 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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Ericsson is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Ericsson currently has a Forward P/E ratio of 16.4. This represents a premium compared to its industry's average Forward P/E of 13.63.
Also, we should mention that ERIC has a PEG ratio of 8.04. 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 was holding an average PEG ratio of 1.57 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 75, which puts it in the top 30% 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.
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 $5.16, marking a +0.19% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.16%. Meanwhile, the Dow lost 0.48%, and the Nasdaq, a tech-heavy index, added 0.11%.
Heading into today, shares of the telecommunications equipment provider had gained 3% over the past month, outpacing the Computer and Technology sector's loss of 1.79% and the S&P 500's loss of 1.25% in that time.
Investors will be hoping for strength from Ericsson as it approaches its next earnings release. On that day, Ericsson is projected to report earnings of $0.07 per share, which would represent a year-over-year decline of 56.25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.39 billion, down 1.01% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.31 per share and revenue of $26.42 billion, which would represent changes of -49.18% and -1.18%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Ericsson. 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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Ericsson is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Ericsson currently has a Forward P/E ratio of 16.4. This represents a premium compared to its industry's average Forward P/E of 13.63.
Also, we should mention that ERIC has a PEG ratio of 8.04. 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 was holding an average PEG ratio of 1.57 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 75, which puts it in the top 30% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.