In the latest trading session, Ericsson (ERIC - Free Report) closed at $8.02, marking a -0.12% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.31%. At the same time, the Dow lost 0.52%, and the tech-heavy Nasdaq lost 0.28%.
Coming into today, shares of the telecommunications equipment provider had lost 1.83% in the past month. In that same time, the Computer and Technology sector gained 2.54%, while the S&P 500 gained 2.92%.
Investors will be hoping for strength from ERIC as it approaches its next earnings release. In that report, analysts expect ERIC to post earnings of $0.08 per share. This would mark a year-over-year decline of 30.56%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.12 billion, down 4.61% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.36 per share and revenue of $23.95 billion. These totals would mark changes of +1091.67% and -2.55%, respectively, from last year.
Any recent changes to analyst estimates for ERIC should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, ERIC is holding a Forward P/E ratio of 22.46. This valuation marks a premium compared to its industry's average Forward P/E of 21.98.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow ERIC in the coming trading sessions, be sure to utilize Zacks.com.