Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified LM Ericsson Telephone Company ( ERIC) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified LM Ericsson Telephone Company 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 $56.6 million.
- ERIC traded 1.5 million shares today in the pre-market hours as of 8:38 AM, representing 31.1% of its average daily volume.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in ERIC with the Ticky from Trade-Ideas. See the FREE profile for ERIC NOW at Trade-Ideas More details on ERIC: Ericsson provides telecommunications equipment and services to mobile and fixed network operators worldwide. It operates in four segments: Networks, Global Services, Support Solutions, and ST-Ericsson. The stock currently has a dividend yield of 2.4%. ERIC has a PE ratio of 15.8. Currently there are 4 analysts that rate LM Ericsson Telephone Company a buy, 2 analysts rate it a sell, and 2 rate it a hold. The average volume for LM Ericsson Telephone Company has been 3.6 million shares per day over the past 30 days. LM Ericsson Telephone has a market cap of $40.1 billion and is part of the technology sector and telecommunications industry. Shares are down 0.8% year-to-date as of the close of trading on Monday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates LM Ericsson Telephone Company as a hold. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, increase in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and weak operating cash flow. Highlights from the ratings report include:
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Communications Equipment industry average. The net income increased by 16.4% when compared to the same quarter one year prior, going from $408.63 million to $475.70 million.
- ERICSSON has improved earnings per share by 15.4% 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 $0.28 versus $0.56 in the prior year. This year, the market expects an improvement in earnings ($0.71 versus $0.28).
- Net operating cash flow has significantly decreased to $237.50 million or 77.53% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Communications Equipment industry and the overall market, ERICSSON's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full LM Ericsson Telephone Company Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.