Telefonaktiebolaget LM Ericsson B ADR (ERIC:NSD) Analysts rate as Buy

STA Research
by: STA Research
Telefonaktiebolaget LM Ericsson

Based on the Telefonaktiebolaget LM Ericsson B ADR stock forecasts (eric stock price) from 11 analysts, the average analyst target price for Telefonaktiebolaget LM Ericsson B ADR (eric stock price) is USD 13.50 over the next 12 months. Telefonaktiebolaget LM Ericsson B ADR’s (eric stock price) average analyst rating is Buy. Stock Target Advisor’s own stock analysis of Telefonaktiebolaget LM Ericsson B ADR is Bullish, which is based on 10 positive signals and 4 negative signals. At the last closing, Telefonaktiebolaget LM Ericsson B ADR’s stock price was USD 7.07. Telefonaktiebolaget LM Ericsson B ADR’s stock price has changed by -0.49% over the past week, -0.23% over the past month and -40.19% over the last year.

Together with its subsidiaries, Telefonaktiebolaget LM Ericsson (publ) offers software solutions, services, and communication infrastructure to the telecom and other industries. Networks, Digital Services, Managed Services, Emerging Business, and Other make up its four operating segments. The Swedish company Telefonaktiebolaget LM Ericsson (publ) was established in 1876 and has its headquarters in Stockholm.

 

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers (for a hold period of at least 12 months) and are in the top quartile. Although stability is good, also keep in mind it can limit returns.

Underpriced compared to earnings

The stock is trading low compared to its peers on a price-to-earnings basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior return on equity

The company management has delivered a better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered a better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered a better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

 

What we don’t like:

Below median total returns

The company has underperformed its peers on annual average total returns in the past 5 years.

Overpriced compared to book value

The stock is trading high compared to its peers’ median on a price-to-book value basis.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector

Low Dividend Growth

This stock has shown below median dividend growth in the previous 5 years compared to its sector.

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