In the latest trading session, Ericsson (ERIC - Free Report) closed at $8.45, marking a -0.35% move from the previous day. This change lagged the S&P 500's daily gain of 0.76%. At the same time, the Dow added 0.67%, and the tech-heavy Nasdaq gained 0.71%.
Prior to today's trading, shares of the telecommunications equipment provider had lost 3.09% over the past month. This has lagged the Computer and Technology sector's loss of 0.35% and the S&P 500's gain of 0.75% 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. In that report, analysts expect ERIC to post earnings of $0.15 per share. This would mark year-over-year growth of 207.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ERIC is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, ERIC is holding a Forward P/E ratio of 20.56. Its industry sports an average Forward P/E of 17.38, so we one might conclude that ERIC is trading at a premium comparatively.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 85, putting it in the top 34% 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.
To follow ERIC in the coming trading sessions, be sure to utilize Zacks.com.