Ericsson (ERIC - Free Report) closed the most recent trading day at $9, moving -0.44% from the previous trading session. This change was narrower than the S&P 500's 0.86% loss on the day. Meanwhile, the Dow lost 0.96%, and the Nasdaq, a tech-heavy index, lost 1.13%.
Coming into today, shares of the telecommunications equipment provider had gained 3.67% in the past month. In that same time, the Computer and Technology sector gained 4.5%, while the S&P 500 gained 3.66%.
Investors will be hoping for strength from ERIC as it approaches its next earnings release. On that day, ERIC is projected to report earnings of $0.16 per share, which would represent year-over-year growth of 277.78%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.95 billion, down 1.41% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.44 per share and revenue of $23.34 billion. These totals would mark changes of +1366.67% and -5.04%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for ERIC. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ERIC is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, ERIC is currently trading at a Forward P/E ratio of 20.55. For comparison, its industry has an average Forward P/E of 21.44, which means ERIC is trading at a discount to the group.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% 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.