Ericsson (ERIC) Outpaces Stock Market Gains: What You Should Know

Ericsson (ERIC) closed at $5.51 in the latest trading session, marking a +1.47% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.86% for the day. Meanwhile, the Dow gained 1.22%, and the Nasdaq, a tech-heavy index, added 0.51%.

The telecommunications equipment provider's stock has dropped by 1.45% in the past month, falling short of the Computer and Technology sector's gain of 3.76% and the S&P 500's gain of 2.84%.

The upcoming earnings release of Ericsson will be of great interest to investors. The company's earnings report is expected on April 16, 2024. The company's upcoming EPS is projected at $0.05, signifying a 37.5% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $5.33 billion, down 10.95% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $0.42 per share and a revenue of $24.03 billion, demonstrating changes of -2.33% and -3.24%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Ericsson. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Ericsson presently features a Zacks Rank of #3 (Hold).

From a valuation perspective, Ericsson is currently exchanging hands at a Forward P/E ratio of 12.99. This represents a discount compared to its industry's average Forward P/E of 14.84.

The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 181, putting it in the bottom 29% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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.

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