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Ericsson (ERIC) Suffers a Larger Drop Than the General Market: Key Insights
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Ericsson (ERIC - Free Report) closed the most recent trading day at $6.11, moving -0.81% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.15%. Meanwhile, the Dow experienced a drop of 0.42%, and the technology-dominated Nasdaq saw an increase of 0.09%.
The the stock of telecommunications equipment provider has risen by 8.45% in the past month, leading the Computer and Technology sector's gain of 1.19% and the S&P 500's gain of 3.5%.
The investment community will be paying close attention to the earnings performance of Ericsson in its upcoming release. The company is slated to reveal its earnings on January 23, 2024. The company is predicted to post an EPS of $0.14, indicating a 30% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $7.04 billion, reflecting a 12.28% fall from the equivalent quarter last year.
Investors should also note any recent changes to analyst estimates for Ericsson. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.43% higher. Right now, Ericsson possesses a Zacks Rank of #2 (Buy).
Looking at valuation, Ericsson is presently trading at a Forward P/E ratio of 13.22. This indicates a premium in contrast to its industry's Forward P/E of 13.13.
Meanwhile, ERIC's PEG ratio is currently 8.75. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Wireless Equipment industry held an average PEG ratio of 1.27.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 91, finds itself in the top 37% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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) Suffers a Larger Drop Than the General Market: Key Insights
Ericsson (ERIC - Free Report) closed the most recent trading day at $6.11, moving -0.81% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.15%. Meanwhile, the Dow experienced a drop of 0.42%, and the technology-dominated Nasdaq saw an increase of 0.09%.
The the stock of telecommunications equipment provider has risen by 8.45% in the past month, leading the Computer and Technology sector's gain of 1.19% and the S&P 500's gain of 3.5%.
The investment community will be paying close attention to the earnings performance of Ericsson in its upcoming release. The company is slated to reveal its earnings on January 23, 2024. The company is predicted to post an EPS of $0.14, indicating a 30% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $7.04 billion, reflecting a 12.28% fall from the equivalent quarter last year.
Investors should also note any recent changes to analyst estimates for Ericsson. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.43% higher. Right now, Ericsson possesses a Zacks Rank of #2 (Buy).
Looking at valuation, Ericsson is presently trading at a Forward P/E ratio of 13.22. This indicates a premium in contrast to its industry's Forward P/E of 13.13.
Meanwhile, ERIC's PEG ratio is currently 8.75. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Wireless Equipment industry held an average PEG ratio of 1.27.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 91, finds itself in the top 37% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.