Ericsson (ERIC - Free Report) closed at $8.25 in the latest trading session, marking a -0.24% move from the prior day. This change was narrower than the S&P 500's daily loss of 0.84%. Meanwhile, the Dow lost 0.53%, and the Nasdaq, a tech-heavy index, lost 1.47%.
Heading into today, shares of the telecommunications equipment provider had gained 2.35% over the past month, lagging the Computer and Technology sector's gain of 5.21% and the S&P 500's gain of 5.2% in that time.
Investors will be hoping for strength from ERIC as it approaches its next earnings release, which is expected to be October 17, 2019. In that report, analysts expect ERIC to post earnings of $0.08 per share. This would mark a year-over-year decline of 33.33%. Meanwhile, our latest consensus estimate is calling for revenue of $6.12 billion, down 4.61% from the prior-year quarter.
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 +1100% and -2.55%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for ERIC. Recent revisions tend to reflect the latest near-term business trends. 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.
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 currently has a Zacks Rank of #3 (Hold).
Digging into valuation, ERIC currently has a Forward P/E ratio of 23.13. Its industry sports an average Forward P/E of 22.01, 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 industry currently has a Zacks Industry Rank of 112, which puts it in the top 44% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.