Ericsson (ERIC) Stock: Buy, Sell, or Hold?
ERIC - Ericsson American Depositary Shares
$9.29
0.07 (0.81%)
▲
5d:
-2.52%
30d:
-7.47%
90d:
-14.69%
WAIT
LOW Confidence
Analysis Updated: Oct 2, 2026 12:00 AM ET
Earnings: Oct 15, 2026
11d
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 MIXED SIGNALS: ERIC shows conflicting indicators. Wait for confirmation before entering.
📊 MIXED SIGNALS: ERIC shows conflicting indicators. Wait for confirmation before entering.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$13.45
Based on 5.8% avg growth
INTRINSIC VALUE TODAY
$8.35
Trading above historical range
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 16.6x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: ERIC is currently trading at $9.29, which is considered oversold relative to its 30-day fair value range of $9.56 to $10.25. The stock's valuation (Forward PE: 15.2) is in line with its historical norms (16.6). Remarkably, the market is currently pricing in an annual earnings decline of 3.0% over the next few years. This aligns with recent fundamental challenges.
Technical Outlook: Technically, ERIC is in a strong downtrend. The price is currently testing key support at $9.04. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock scores a mixed 55/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. Current signals suggest waiting for a better entry point before initiating new positions.
Technical Outlook: Technically, ERIC is in a strong downtrend. The price is currently testing key support at $9.04. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock scores a mixed 55/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. Current signals suggest waiting for a better entry point before initiating new positions.
Quick Decision Summary
Current Position
OVERSOLD
Historical Trading Range
$9.56 -
$10.25
Company Quality Score
52/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
74.8%
All Signals
- BULLISH: Price oversold vs 30-day range
- NEUTRAL: Mixed technical signals (55/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($9.33)
- WARNING: Composite score 52/100 in the bottom quintile — this cohort historically lags the market
Trading Range Analysis
30-Day Trading Range
$9.56 -
$10.25
Current vs Trading Range
OVERSOLD
Support & Resistance Levels
Support Level
$9.04
Resistance Level
$10.26
Current Trend
Strong Downtrend
Technical data as of
Oct 2, 2026
Fundamental Context
Forward P/E (Next Year Est.)
15.16
Wall Street Target
$9.33
(+0.5%)
Revenue Growth (YoY)
-6.1%
Earnings Growth (YoY)
-10.9%
Profit Margin
10.8%
Valuation Discount vs History
-3.0% cheaper
PE vs Historical
15.2 vs 16.6
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-3.0%
(market-implied from PE analysis)
1-Year Target
$9.01
(-3%)
2-Year Target
$8.74
(-6%)
3-Year Target
$8.48
(-9%)
3-Yr Target (if PE normalizes)
(PE: 15→17)
$9.28
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 20.4, Growth: 7.5%)
$15.52
(+67%)
Base:
(SPY PE: 15.2, Growth: 7.5%)
$11.54
(+24%)
Bear:
(PE: 12.9, Growth: 7.5%)
$9.81
(+6%)
📈
Valuation based on Current Earnings
Trailing PE: 12.29 | Current EPS (TTM): $0.75
Bull Case
$8.28
(-11%)
Analyst growth -18.3%, PE expands to 13.5
Base Case
$7.53
(-19%)
Market implied -18.3%, PE stable at 12.3
Bear Case
$6.27
(-33%)
Severe decline -20.0%, PE contracts to 10.4
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 15.2 to 16.6
Stabilization Target:
$10.17
(+9.5%)
PE Expansion Potential:
+9.5%
Share & Embed Analysis
Last updated: October 02, 2026 9:23 PM ET
Data refreshes hourly during market hours. Next update: 10:23 PM
Data refreshes hourly during market hours. Next update: 10:23 PM
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Technical Signals Check
Is ERIC showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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