Ericsson (ERIC - Free Report) closed at $7.92 in the latest trading session, marking a -0.75% move from the prior day. This move was narrower than the S&P 500's daily loss of 1.23%. At the same time, the Dow lost 1.28%, and the tech-heavy Nasdaq lost 1.13%.
Prior to today's trading, shares of the telecommunications equipment provider had gained 1.79% over the past month. This has outpaced the Computer and Technology sector's gain of 1.53% and lagged the S&P 500's gain of 1.95% 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, the Zacks Consensus Estimate for revenue is projecting net sales 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.
It is also important to note the recent changes to analyst estimates for ERIC. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 holding a Zacks Rank of #3 (Hold) right now.
Investors should also note ERIC's current valuation metrics, including its Forward P/E ratio of 22.32. This valuation marks a premium compared to its industry's average Forward P/E of 22.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 155, which puts it in the bottom 40% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.