In the latest trading session, Ericsson (ERIC) closed at $8.93, marking a -0.56% move from the previous day. This change lagged the S&P 500's 0.38% loss on the day. Meanwhile, the Dow lost 0.44%, and the Nasdaq, a tech-heavy index, lost 0.67%.
Prior to today's trading, shares of the telecommunications equipment provider had gained 0.22% over the past month. This has lagged the Computer and Technology sector's gain of 3.8% and the S&P 500's gain of 1.91% in that time.
ERIC will be looking to display strength as it nears its next earnings release. On that day, ERIC is projected to report earnings of $0.08 per share, which would represent a year-over-year decline of 11.11%. Meanwhile, our latest consensus estimate is calling for revenue of $5.62 billion, up 5.31% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.53 per share and revenue of $24.53 billion, which would represent changes of +381.82% and +2.19%, respectively, from the prior year.
Any recent changes to analyst estimates for ERIC should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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 has moved 2.77% lower. 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 17.02. This represents a discount compared to its industry's average Forward P/E of 21.4.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.