Ericsson (ERIC) Outpaces Stock Market Gains: What You Should Know
Ericsson (ERIC) closed at $9.55 in the latest trading session, marking a +0.95% move from the prior day. This change outpaced the S&P 500's 0.09% gain on the day. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq gained 0.62%.
Heading into today, shares of the telecommunications equipment provider had gained 1.39% over the past month, outpacing the Computer and Technology sector's gain of 0.35% and lagging the S&P 500's gain of 2.08% in that time.
ERIC will be looking to display strength as it nears its next earnings release. In that report, analysts expect ERIC to post earnings of $0.08 per share. This would mark year-over-year growth of 900%. Meanwhile, our latest consensus estimate is calling for revenue of $5.75 billion, down 0.08% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.38 per share and revenue of $23.63 billion. These totals would mark changes of +1166.67% and -3.85%, respectively, from last year.
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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant. ERIC currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, ERIC is currently trading at a Forward P/E ratio of 24.73. Its industry sports an average Forward P/E of 24.06, 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 16, putting it in the top 7% 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.