Ericsson (ERIC) closed the most recent trading day at $9.54, moving +1.06% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.78%. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq gained 1.44%.
Coming into today, shares of the telecommunications equipment provider had gained 1.07% in the past month. In that same time, the Computer and Technology sector gained 4.97%, while the S&P 500 lost 1.32%.
Wall Street will be looking for positivity from ERIC as it approaches its next earnings report date. This is expected to be July 17, 2020. On that day, ERIC is projected to report earnings of $0.07 per share, which would represent year-over-year growth of 16.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.59 billion, down 3.74% from the year-ago period.
ERIC's full-year Zacks Consensus Estimates are calling for earnings of $0.51 per share and revenue of $24.72 billion. These results would represent year-over-year changes of +363.64% and +3.01%, respectively.
Investors should also note any recent changes to analyst estimates for ERIC. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.5% higher within the past month. ERIC currently has a Zacks Rank of #2 (Buy).
Digging into valuation, ERIC currently has a Forward P/E ratio of 18.6. For comparison, its industry has an average Forward P/E of 25.28, which means ERIC is trading at a discount to the group.
Also, we should mention that ERIC has a PEG ratio of 0.71. 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 industry currently had an average PEG ratio of 1.91 as of yesterday's close.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 38% 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.
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