Ericsson (ERIC - Free Report) closed the most recent trading day at $6.78, moving -1.17% from the previous trading session. This change was narrower than the S&P 500's daily loss of 5.18%. Meanwhile, the Dow lost 6.3%, and the Nasdaq, a tech-heavy index, lost 4.7%.
Prior to today's trading, shares of the telecommunications equipment provider had lost 23.69% over the past month. This has was narrower than the Computer and Technology sector's loss of 24.96% and the S&P 500's loss of 24.68% 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 $0.07 per share, which would represent a year-over-year decline of 22.22%. 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 $0.52 per share and revenue of $24.53 billion, which would represent changes of +372.73% 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.42% lower within the past month. ERIC currently has a Zacks Rank of #3 (Hold).
Digging into valuation, ERIC currently has a Forward P/E ratio of 13.19. Its industry sports an average Forward P/E of 16.71, so we one might conclude that ERIC is trading at a discount comparatively.
It is also worth noting that ERIC currently has a PEG ratio of 0.74. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Wireless Equipment industry currently had an average PEG ratio of 1.31 as of yesterday's close.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.