Ericsson (ERIC) shares fall as the market gains: what you need to know

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In the last trading session, Ericsson (ERIC) closed at $ 11.40, marking a movement of -1.13% from the previous day. This move lagged behind the S&P 500’s 0.34% daily gain. At the same time, the Dow Jones rose 0.69% and the tech-rich Nasdaq gained 0.42%.

Prior to today’s stock market, shares of the telecommunications equipment supplier had lost 0.69% in the past month. This lagged behind the 4.96% gain of the IT and tech sector and the 4.3% gain of the S&P 500 during this period.

ERIC will seek to show strength as the next publication of its results approaches. On that day, ERIC is expected to report earnings of $ 0.17 per share, which would represent year-over-year growth of 189.47%. Meanwhile, Zacks’ consensus estimate for revenue projects net sales of $ 6.41 billion, up 7.61% from the previous year.

ERIC’s Zacks consensus estimates for the full year project earnings of $ 0.57 per share and revenue of $ 25.11 billion. These results would represent year-over-year variations of + 418.18% and + 4.63%, respectively.

Any recent changes to analysts’ estimates for ERIC should also be noted by investors. Recent revisions tend to reflect the latest short-term business trends. Thus, the positive estimate revisions reflect the optimism of analysts about the business and profitability of the company.

Our research shows that these changes in estimate are directly correlated with short-term stock prices. Investors can take advantage of this by using the Zacks ranking. This model takes into account these changes in estimate and provides a simple and workable scoring system.

The Zacks ranking system, which ranges from # 1 (strong buy) to # 5 (strong sell), has an impressive history of externally audited outperformance, with # 1 stocks generating an average annual return of +25. % since 1988. Over the past 30 days, our consensus EPS forecast has increased 1.35%. ERIC currently has a Zacks rank of # 3 (Hold).

Valuation is also important, so investors should note that ERIC currently has a forward P / E ratio of 20.41. For comparison, its industry has an average forward P / E of 20.32, which means ERIC is trading at a premium to the group.

It should also be noted that ERIC currently has a PEG ratio of 0.78. This metric is used similarly to the famous P / E ratio, but the PEG ratio also takes into account the expected growth rate of the stock’s earnings. The ERIC industry had an average PEG ratio of 1.91 at yesterday’s close.

The wireless equipment industry is part of the computer and technology sector. This industry currently has a Zacks Industry Rank of 124, which places it in the top 49% of 250+ industries.

The Zacks Industry Rankings assesses the strength of our individual industry groups by measuring the average Zacks rank of individual stocks within groups. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.

To follow ERIC in future trading sessions, be sure to use Zacks.com.

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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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