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Ericsson (ERIC) Stock Falls Amid Market Uptick: What Investors Need to Know

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Ericsson (ERIC - Free Report) closed the latest trading day at $5.49, indicating a -1.26% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.32%. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq gained 0.2%.

Prior to today's trading, shares of the telecommunications equipment provider had gained 3.93% over the past month. This has lagged the Computer and Technology sector's gain of 6.04% and the S&P 500's gain of 5.11% in that time.

The upcoming earnings release of Ericsson will be of great interest to investors. The company's earnings report is expected on April 16, 2024. On that day, Ericsson is projected to report earnings of $0.04 per share, which would represent a year-over-year decline of 50%. In the meantime, our current consensus estimate forecasts the revenue to be $5.33 billion, indicating a 10.95% decline compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.42 per share and a revenue of $24.03 billion, indicating changes of -2.33% and -3.23%, respectively, from the former year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Ericsson. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Ericsson is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Ericsson's current valuation metrics, including its Forward P/E ratio of 13.3. This valuation marks a discount compared to its industry's average Forward P/E of 14.76.

The Wireless Equipment industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 189, finds itself in the bottom 25% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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