Ericsson (ERIC) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Ericsson (ERIC) closed at $8.04, marking a +1.26% move from the previous day. This change outpaced the S&P 500's 0.03% gain on the day. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.04%.
Prior to today's trading, shares of the telecommunications equipment provider had lost 7.78% over the past month. This has lagged the Computer and Technology sector's gain of 2.03% and the S&P 500's gain of 2.25% in that time.
Wall Street will be looking for positivity from ERIC as it approaches its next earnings report date. The company is expected to report EPS of $0.08, down 33.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.12 billion, down 4.61% from the year-ago period.
ERIC's full-year Zacks Consensus Estimates are calling for earnings of $0.36 per share and revenue of $23.95 billion. These results would represent year-over-year changes of +1100% and -2.55%, respectively.
It is also important to note the recent changes to analyst estimates for ERIC. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 remained stagnant. ERIC is currently a Zacks Rank #3 (Hold).
Investors should also note ERIC's current valuation metrics, including its Forward P/E ratio of 22.21. Its industry sports an average Forward P/E of 22.1, 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 79, putting it in the top 31% 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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