Ericsson (NASDAQ:ERIC): Stock Under Review

Taking a quick look at some possible support and resistance levels on shares of Ericsson (NASDAQ:ERIC), we can see that the 52-week high is currently 9.36, and the 52-week low is currently 6.16. When shares are trading close to the 52-week high or 52-week low, investors may be watching for a move through either level. Checking in on recent action, we note that the stock has been trading near the $8.53 level. Investors may also want to keep an eye on historical price activity. During the past 12 weeks, the stock has moved -7.28%. Looking further back to the start of the calendar year, we can see that shares have moved -3.83%. Over the past 4 weeks, shares have seen a change of -7.28%. Over the last 5 trading days, the stock has moved 2.9%. Investors will be monitoring stock activity over the next few sessions to try and decipher which way the momentum is leaning.

Keeping watch on technicals may involve many different plans and scenarios. Investors may be seeking to get some clarity about a certain stock’s history, and eventually try to project the future. With so much historical data available, investors may choose to look at many different time frames when examining a stock. Going back days, months, of even years, may help broaden the scope and help investors see the bigger picture. When companies gear up to release the next round of quarterly earnings results, investors will be closely watching to see how profitable the overall quarter was. Occasionally, low expectations may provide ample impetus for future stock gains. Per usual, there will most likely be big winners and losers depending on the strength of the individual reports.

Analysts have set a target price on shares of Ericsson (NASDAQ:ERIC). The current consensus price target is $9.5. Wall Street analysts often provide price target projections on stocks that they cover. Price target projections can be created using a wide variety of methods. Many investors will closely track stock target prices, especially when analysts make updates. A thorough research report will generally offer detailed reasoning for a certain target projection. Some investors may watch sell-side targets very closely and use the information to help with their own stock research.

Sell-side analysts have the capability of providing stock ratings for companies that they cover. According to analysts polled by Zacks Research, the current average broker rating on shares of Ericsson (NASDAQ:ERIC) is 2.43. This average rating includes analysts who have offered Sell, Buy and Hold ratings on the stock. This rating falls on a numeric scale from 1 to 5. A score of 1 would indicate a Buy recommendation, and a score of 5 would represent a Sell recommendation. Out of all the analysts offering ratings, 2 have pegged the stock a Strong Buy or Buy, based on data provided by Zacks Research.

Tracking the current quarter consensus EPS estimate for Ericsson (NASDAQ:ERIC), we have noted that the number is currently 0.05. This estimate is using 1 contributing analysts polled by Zacks Research. For the last quarter, the company posted a quarterly EPS of 0.12. Sell-side Wall Street analysts study companies and provide their opinions of where the stock might be going in the future. A lot of weight is given to analyst estimates, and earnings beats or misses revolve around these predictions. Sometimes these estimates are very close to the actual, and other times they are not. When a company announces actual earnings results, a large surprise factor can result in increased volatility. If a company beats estimates and posts a positive earnings surprise, the stock may see a near-term bump in price. On the flip side, a negative surprise may move the stock lower. Based on the unknown, many investors may choose to trade with caution around earnings releases.

Under recent market conditions, it may be quite difficult to be overly bearish. Most signs seem to be pointing in the right direction as investors keep concentrating on superior returns from the stock market. At this point in time, investors may have to make the tough decision whether to be fully invested in the stock market, or keep some cash handy on the sidelines. As we have seen, there will be a few days or weeks where market action may spur some second guessing, but the bulls seem they are still going to keep running. Many investors may be crafting plans for when the good times inevitably come to an end. Being prepared for market changes may help weather the storm when it comes.

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.