Ericsson (ERIC - Free Report) closed at $8.78 in the latest trading session, marking a -0.34% move from the prior day. This move lagged the S&P 500's daily gain of 1.48%. At the same time, the Dow added 2.21%, and the tech-heavy Nasdaq gained 0.77%.
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 $0.08 per share, which would represent year-over-year growth of 33.33%. Meanwhile, our latest consensus estimate is calling for revenue of $5.43 billion, down 6.45% from the prior-year quarter.
ERIC's full-year Zacks Consensus Estimates are calling for earnings of $0.51 per share and revenue of $23.37 billion. These results would represent year-over-year changes of +363.64% and -2.62%, respectively.
Investors should also note any recent changes to analyst estimates for ERIC. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. ERIC is currently a Zacks Rank #2 (Buy).
Investors should also note ERIC's current valuation metrics, including its Forward P/E ratio of 17.45. This represents a discount compared to its industry's average Forward P/E of 20.99.
It is also worth noting that ERIC currently has a PEG ratio of 0.67. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Wireless Equipment was holding an average PEG ratio of 2.19 at yesterday's closing price.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 76, putting it in the top 30% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.