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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 $9.26, marking a +0.98% move from the previous day. This change outpaced the S&P 500's 0.36% loss on the day. At the same time, the Dow lost 0.65%, and the tech-heavy Nasdaq gained 0.15%.
ERIC will be looking to display strength as it nears its next earnings release, which is expected to be July 17, 2020. The company is expected to report EPS of $0.08, up 33.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.43 billion, down 6.45% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.52 per share and revenue of $24.32 billion. These totals would mark changes of +372.73% and +1.34%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for ERIC. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 2.48% higher. ERIC is currently a Zacks Rank #2 (Buy).
In terms of valuation, ERIC is currently trading at a Forward P/E ratio of 17.72. This represents a discount compared to its industry's average Forward P/E of 22.69.
It is also worth noting that ERIC currently has a PEG ratio of 0.68. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Wireless Equipment stocks are, on average, holding a PEG ratio of 2.15 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% 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.
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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 $9.26, marking a +0.98% move from the previous day. This change outpaced the S&P 500's 0.36% loss on the day. At the same time, the Dow lost 0.65%, and the tech-heavy Nasdaq gained 0.15%.
ERIC will be looking to display strength as it nears its next earnings release, which is expected to be July 17, 2020. The company is expected to report EPS of $0.08, up 33.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.43 billion, down 6.45% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.52 per share and revenue of $24.32 billion. These totals would mark changes of +372.73% and +1.34%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for ERIC. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 2.48% higher. ERIC is currently a Zacks Rank #2 (Buy).
In terms of valuation, ERIC is currently trading at a Forward P/E ratio of 17.72. This represents a discount compared to its industry's average Forward P/E of 22.69.
It is also worth noting that ERIC currently has a PEG ratio of 0.68. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Wireless Equipment stocks are, on average, holding a PEG ratio of 2.15 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% 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.