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

Ericsson (ERIC) closed at $5.35 in the latest trading session, marking a -0.19% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.13% for the day. On the other hand, the Dow registered a gain of 0.13%, and the technology-centric Nasdaq decreased by 0.32%.

Prior to today's trading, shares of the telecommunications equipment provider had lost 9% over the past month. This has lagged the Computer and Technology sector's gain of 2.15% and the S&P 500's gain of 2.99% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Ericsson in its upcoming earnings disclosure. The company is expected to report EPS of $0.04, down 50% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $5.33 billion, indicating a 10.95% decline compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.42 per share and a revenue of $24.05 billion, representing changes of -2.33% and -3.17%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Ericsson. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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, the Zacks Consensus EPS estimate has moved 10.3% lower. Currently, Ericsson is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Ericsson is presently being traded at a Forward P/E ratio of 12.82. This represents a discount compared to its industry's average Forward P/E of 14.35.

The Wireless Equipment industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 156, positioning it in the bottom 39% 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.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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