Technology

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

In the latest trading session, Ericsson (ERIC) closed at $9.15, marking a -0.65% move from the previous day. This move lagged the S&P 500's daily gain of 0.36%. Elsewhere, the Dow gained 0.36%, while the tech-heavy Nasdaq added 0.34%.

Heading into today, shares of the telecommunications equipment provider had gained 0.33% over the past month, lagging the Computer and Technology sector's gain of 1.96% and the S&P 500's gain of 0.64% in that time.

Investors will be hoping for strength from ERIC as it approaches its next earnings release, which is expected to be April 17, 2019. The company is expected to report EPS of $0.04, up 300% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.26 billion, down 1.72% from the year-ago period.

ERIC's full-year Zacks Consensus Estimates are calling for earnings of $0.32 per share and revenue of $23.26 billion. These results would represent year-over-year changes of +966.67% and -5.37%, respectively.

Investors might also notice recent changes to analyst estimates for ERIC. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. ERIC currently has a Zacks Rank of #4 (Sell).

Looking at its valuation, ERIC is holding a Forward P/E ratio of 29.01. This valuation marks a premium compared to its industry's average Forward P/E of 22.47.

Also, we should mention that ERIC has a PEG ratio of 0.7. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Wireless Equipment was holding an average PEG ratio of 2.28 at yesterday's closing price.

The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% 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.

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.

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