In the latest trading session, Ericsson (ERIC - Free Report) closed at $7.83, marking a +0.64% move from the previous day. This change lagged the S&P 500's 1.27% gain on the day. At the same time, the Dow added 1.25%, and the tech-heavy Nasdaq gained 1.48%.
Heading into today, shares of the telecommunications equipment provider had lost 10.68% over the past month, lagging the Computer and Technology sector's loss of 6.31% and the S&P 500's loss of 4.37% in that time.
ERIC will be looking to display strength as it nears its next earnings release. On that day, ERIC is projected to report earnings of $0.08 per share, which would represent a year-over-year decline of 33.33%. Our most recent consensus estimate is calling for quarterly revenue of $6.12 billion, down 4.61% from the year-ago period.
ERIC's full-year Zacks Consensus Estimates are calling for earnings of $0.36 per share and revenue of $23.95 billion. These results would represent year-over-year changes of +1100% and -2.55%, respectively.
Any recent changes to analyst estimates for ERIC should also be noted by investors. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. ERIC currently has a Zacks Rank of #3 (Hold).
In terms of valuation, ERIC is currently trading at a Forward P/E ratio of 21.76. Its industry sports an average Forward P/E of 21.5, 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 95, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks 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.