Ericsson (ERIC) Outpaces Stock Market Gains: What You Should Know
Ericsson (ERIC) closed at $9.51 in the latest trading session, marking a +0.74% move from the prior day. This move outpaced the S&P 500's daily gain of 0.45%. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, added 0.75%.
Coming into today, shares of the telecommunications equipment provider had lost 2.78% in the past month. In that same time, the Computer and Technology sector gained 5.19%, while the S&P 500 gained 3.84%.
Wall Street will be looking for positivity from ERIC as it approaches its next earnings report date. This is expected to be July 17, 2019. In that report, analysts expect ERIC to post earnings of $0.08 per share. This would mark year-over-year growth of 900%. Our most recent consensus estimate is calling for quarterly revenue of $5.75 billion, down 0.08% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.39 per share and revenue of $23.63 billion. These totals would mark changes of +1200% and -3.85%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for ERIC. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.65% higher. ERIC is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at its valuation, ERIC is holding a Forward P/E ratio of 24.52. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 24.52.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 27, which puts it in the top 11% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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