Trade-Ideas LLC identified

LM Ericsson Telephone

(

ERIC

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified LM Ericsson Telephone as such a stock due to the following factors:

  • ERIC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $48.9 million.
  • ERIC traded 648,350 shares today in the pre-market hours as of 8:00 AM, representing 12% of its average daily volume.

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More details on ERIC:

Ericsson provides communications technology and services worldwide. The company's Networks segment delivers products and solutions for mobile access, Internet protocol (IP) and transmission networks, core networks, and cloud. The stock currently has a dividend yield of 2.7%. Currently there are 3 analysts that rate LM Ericsson Telephone a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for LM Ericsson Telephone has been 3.8 million shares per day over the past 30 days. LM Ericsson Telephone has a market cap of $30.9 billion and is part of the technology sector and telecommunications industry. Shares are down 3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates LM Ericsson Telephone as a

hold

. 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 and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and disappointing return on equity.

Highlights from the ratings report include:

  • ERIC's revenue growth has slightly outpaced the industry average of 4.9%. Since the same quarter one year prior, revenues slightly increased by 0.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • ERIC's debt-to-equity ratio is very low at 0.19 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.45, which illustrates the ability to avoid short-term cash problems.
  • ERICSSON has improved earnings per share by 22.2% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ERICSSON reported lower earnings of $0.45 versus $0.58 in the prior year. This year, the market expects an improvement in earnings ($0.64 versus $0.45).
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Communications Equipment industry and the overall market on the basis of return on equity, ERICSSON has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • ERIC's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 27.92%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.

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