Ericsson (ERIC - Free Report) closed the most recent trading day at $9.16, moving -0.76% from the previous trading session. This change lagged the S&P 500's daily loss of 0.32%. Meanwhile, the Dow lost 0.38%, and the Nasdaq, a tech-heavy index, lost 0.4%.
Heading into today, shares of the telecommunications equipment provider had gained 4.41% over the past month, outpacing the Computer and Technology sector's gain of 2.58% and the S&P 500's gain of 2.51% in that time.
Wall Street will be looking for positivity from ERIC as it approaches its next earnings report date. On that day, ERIC is projected to report earnings of $0.16 per share, which would represent year-over-year growth of 277.78%. Our most recent consensus estimate is calling for quarterly revenue 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.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ERIC is currently a Zacks Rank #3 (Hold).
Digging into valuation, ERIC currently has a Forward P/E ratio of 20.98. For comparison, its industry has an average Forward P/E of 20.79, which means ERIC is trading at a premium to the group.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 76, which puts it in the top 30% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.