In the latest trading session, Ericsson (ERIC - Free Report) closed at $9.68, marking a -3.01% move from the previous day. This change lagged the S&P 500's daily gain of 0.47%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.05%.
Prior to today's trading, shares of the telecommunications equipment provider had gained 8.48% over the past month. This has outpaced the Computer and Technology sector's loss of 3.49% and the S&P 500's loss of 0.08% in that time.
Investors will be hoping for strength from ERIC as it approaches its next earnings release. The company is expected to report EPS of $0.08, up 900% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.75 billion, down 0.08% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.38 per share and revenue of $23.63 billion. These totals would mark changes of +1166.67% and -3.85%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for ERIC. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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 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. Within the past 30 days, our consensus EPS projection remained stagnant. ERIC is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note ERIC's current valuation metrics, including its Forward P/E ratio of 26.09. Its industry sports an average Forward P/E of 25.25, 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 32, putting it in the top 13% 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.