Ericsson (ERIC - Free Report) closed at $8.96 in the latest trading session, marking a +1.82% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.97%. Elsewhere, the Dow gained 1.09%, while the tech-heavy Nasdaq added 1.08%.
Prior to today's trading, shares of the telecommunications equipment provider had gained 0.23% over the past month. This has outpaced the Computer and Technology sector's loss of 2.56% and the S&P 500's loss of 3.04% in that time.
ERIC will be looking to display strength as it nears its next earnings release, which is expected to be January 25, 2019. The company is expected to report EPS of $0.15, up 207.14% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.88 billion, up 0.04% from the year-ago period.
It is also important to note the recent changes to analyst estimates for ERIC. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant. ERIC is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that ERIC has a Forward P/E ratio of 21.33 right now. This valuation marks a premium compared to its industry's average Forward P/E of 17.03.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 61, putting it in the top 24% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.