NEW YORK (

TheStreet

) -- Shares of

Ericsson Telephone Company

(Nasdaq:

ERIC

) were gapping up Wednesday morning with an open price 10.9% higher than Tuesday's closing price. The stock closed at $13.14 Tuesday and opened today's trading at $14.57.

The average volume for Ericsson Telephone has been 5.8 million shares per day over the past 30 days. Ericsson Telephone has a market cap of $42.7 billion and is part of the

technology

sector and

telecommunications

industry. Shares are up 14% year to date as of the close of trading on Tuesday.

LM Ericsson Telephone Company provides communications equipment and related professional services, and multimedia solutions to mobile and fixed network operators worldwide. It operates in five segments: Networks, Professional Services, Multimedia, Sony Ericsson, and ST-Ericsson. The company has a P/E ratio of 15.8, below the average telecommunications industry P/E ratio of 25.4 and below the S&P 500 P/E ratio of 16.7.

TheStreet Recommends

TheStreet Ratings rates Ericsson Telephone as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. You can view the full

Ericsson Telephone Ratings Report

.

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