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Ericsson (ERIC) Ascends While Market Falls: Some Facts to Note
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The most recent trading session ended with Ericsson (ERIC - Free Report) standing at $5.74, reflecting a +1.06% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily loss of 0.65%. At the same time, the Dow lost 0.49%, and the tech-heavy Nasdaq lost 0.96%.
The telecommunications equipment provider's stock has climbed by 6.17% in the past month, exceeding the Computer and Technology sector's gain of 2.19% and the S&P 500's gain of 3.27%.
Market participants will be closely following the financial results of Ericsson in its upcoming release. On that day, Ericsson is projected to report earnings of $0.04 per share, which would represent a year-over-year decline of 50%. Simultaneously, our latest consensus estimate expects the revenue to be $5.33 billion, showing a 10.95% drop compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.42 per share and revenue of $24.03 billion, indicating changes of -2.33% and -3.23%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Ericsson. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Ericsson presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Ericsson is presently being traded at a Forward P/E ratio of 13.59. Its industry sports an average Forward P/E of 14.88, so one might conclude that Ericsson is trading at a discount comparatively.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 191, finds itself in the bottom 25% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Ericsson (ERIC) Ascends While Market Falls: Some Facts to Note
The most recent trading session ended with Ericsson (ERIC - Free Report) standing at $5.74, reflecting a +1.06% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily loss of 0.65%. At the same time, the Dow lost 0.49%, and the tech-heavy Nasdaq lost 0.96%.
The telecommunications equipment provider's stock has climbed by 6.17% in the past month, exceeding the Computer and Technology sector's gain of 2.19% and the S&P 500's gain of 3.27%.
Market participants will be closely following the financial results of Ericsson in its upcoming release. On that day, Ericsson is projected to report earnings of $0.04 per share, which would represent a year-over-year decline of 50%. Simultaneously, our latest consensus estimate expects the revenue to be $5.33 billion, showing a 10.95% drop compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.42 per share and revenue of $24.03 billion, indicating changes of -2.33% and -3.23%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Ericsson. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Ericsson presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Ericsson is presently being traded at a Forward P/E ratio of 13.59. Its industry sports an average Forward P/E of 14.88, so one might conclude that Ericsson is trading at a discount comparatively.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 191, finds itself in the bottom 25% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.