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Ericsson (ERIC) Gains As Market Dips: What You Should Know
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In the latest trading session, Ericsson (ERIC - Free Report) closed at $5.28, marking a +1.34% move from the previous day. This change outpaced the S&P 500's 0.7% loss on the day. At the same time, the Dow lost 0.57%, and the tech-heavy Nasdaq lost 1.06%.
Prior to today's trading, shares of the telecommunications equipment provider had gained 4.83% over the past month. This has outpaced the Computer and Technology sector's gain of 3.06% and the S&P 500's gain of 0.58% in that time.
Ericsson will be looking to display strength as it nears its next earnings release. In that report, analysts expect Ericsson to post earnings of $0.07 per share. This would mark a year-over-year decline of 56.25%. Meanwhile, our latest consensus estimate is calling for revenue of $6.39 billion, down 1.01% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.31 per share and revenue of $26.42 billion, which would represent changes of -49.18% and -1.18%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Ericsson. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Ericsson currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Ericsson has a Forward P/E ratio of 16.59 right now. Its industry sports an average Forward P/E of 14.02, so we one might conclude that Ericsson is trading at a premium comparatively.
It is also worth noting that ERIC currently has a PEG ratio of 8.13. 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 1.53 as of yesterday's close.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 37% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Ericsson (ERIC) Gains As Market Dips: What You Should Know
In the latest trading session, Ericsson (ERIC - Free Report) closed at $5.28, marking a +1.34% move from the previous day. This change outpaced the S&P 500's 0.7% loss on the day. At the same time, the Dow lost 0.57%, and the tech-heavy Nasdaq lost 1.06%.
Prior to today's trading, shares of the telecommunications equipment provider had gained 4.83% over the past month. This has outpaced the Computer and Technology sector's gain of 3.06% and the S&P 500's gain of 0.58% in that time.
Ericsson will be looking to display strength as it nears its next earnings release. In that report, analysts expect Ericsson to post earnings of $0.07 per share. This would mark a year-over-year decline of 56.25%. Meanwhile, our latest consensus estimate is calling for revenue of $6.39 billion, down 1.01% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.31 per share and revenue of $26.42 billion, which would represent changes of -49.18% and -1.18%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Ericsson. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Ericsson currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Ericsson has a Forward P/E ratio of 16.59 right now. Its industry sports an average Forward P/E of 14.02, so we one might conclude that Ericsson is trading at a premium comparatively.
It is also worth noting that ERIC currently has a PEG ratio of 8.13. 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 1.53 as of yesterday's close.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 37% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.