Ericsson (ERIC) closed the most recent trading day at $13.84, moving +1.17% from the previous trading session. This change outpaced the S&P 500's 1.11% gain on the day.
Coming into today, shares of the telecommunications equipment provider had gained 1.45% in the past month. In that same time, the Computer and Technology sector gained 8.47%, while the S&P 500 gained 4.72%.
ERIC will be looking to display strength as it nears its next earnings release, which is expected to be April 21, 2021. The company is expected to report EPS of $0.12, up 50% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.35 billion, up 23.32% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.78 per share and revenue of $29.07 billion. These totals would mark changes of +21.88% and +14.2%, respectively, from last year.
Any recent changes to analyst estimates for ERIC should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.63% lower within the past month. ERIC is currently a Zacks Rank #4 (Sell).
In terms of valuation, ERIC is currently trading at a Forward P/E ratio of 17.87. This represents a discount compared to its industry's average Forward P/E of 20.28.
Also, we should mention that ERIC has a PEG ratio of 0.62. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Wireless Equipment industry currently had an average PEG ratio of 1.84 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 81, which puts it in the top 32% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.