In the latest trading session, Ericsson (ERIC - Free Report) closed at $8.79, marking a -1.35% move from the previous day. This move lagged the S&P 500's daily loss of 0.15%. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq lost 0.24%.
Heading into today, shares of the telecommunications equipment provider had lost 4.09% over the past month, lagging the Computer and Technology sector's gain of 7.03% and the S&P 500's gain of 3.88% in that time.
ERIC will be looking to display strength as it nears its next earnings release, which is expected to be January 24, 2020. 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.
Any recent changes to analyst estimates for ERIC should also be noted by investors. These revisions help to show the ever-changing nature of near-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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. ERIC is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, ERIC currently has a Forward P/E ratio of 16.42. Its industry sports an average Forward P/E of 26.61, so we one might conclude that ERIC is trading at a discount comparatively.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 230, putting it in the bottom 10% 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.