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Ericsson (ERIC) Gains As Market Dips: What You Should Know

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Ericsson (ERIC - Free Report) closed the most recent trading day at $8.07, moving +0.25% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.56%. Meanwhile, the Dow lost 1.19%, and the Nasdaq, a tech-heavy index, lost 1.67%.

Coming into today, shares of the telecommunications equipment provider had gained 1.39% in the past month. In that same time, the Computer and Technology sector lost 0.85%, while the S&P 500 lost 1.22%.

Wall Street will be looking for positivity from ERIC as it approaches its next earnings report date. This is expected to be October 17, 2019. In that report, analysts expect ERIC to post earnings of $0.08 per share. This would mark a year-over-year decline of 33.33%. Meanwhile, our latest consensus estimate is calling for revenue of $5.90 billion, down 8.02% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.37 per share and revenue of $23.86 billion. These totals would mark changes of +1133.33% and -2.91%, respectively, from last 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. 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. 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, 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 has moved 2.1% higher within the past month. ERIC is currently a Zacks Rank #3 (Hold).

Looking at its valuation, ERIC is holding a Forward P/E ratio of 22.06. Its industry sports an average Forward P/E of 21.51, so we one might conclude that ERIC is trading at a premium comparatively.

The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 70, putting it in the top 28% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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