ERIC Stock Analysis: Buy, Sell, or Hold?
ERIC - Ericsson American Depositary Shares
$13.16
-0.58 (-4.22%)
▼
5d:
+0.92%
30d:
+13.16%
90d:
+15.34%
HOLD
MODERATE Confidence
Analysis Updated: Jun 3, 2026 12:00 AM ET
Earnings: Jul 21, 2026
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD: ERIC trades at premium valuation expecting 4.8% growth. Hold existing positions but don't chase. Wait for better entry.
📊 HOLD: ERIC trades at premium valuation expecting 4.8% growth. Hold existing positions but don't chase. Wait for better entry.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$15.51
Based on 6.4% avg growth
INTRINSIC VALUE TODAY
$9.63
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 16.8x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: ERIC is currently trading at $13.16, which is considered extended relative to its 30-day fair value range of $11.75 to $13.24. From a valuation perspective, the stock is trading at a premium (Forward PE: 19.4) compared to its historical average (16.8). At these levels, the market is pricing in 4.8% annual earnings growth.
Technical Outlook: Technically, ERIC is in a strong uptrend. Immediate support is located at $12.73, while resistance sits at $13.77. Short-term momentum is weak, with the stock down 4.2% recently.
Market Sentiment: ERIC has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. However, the stock is trading significantly above the average Wall Street target of $10.45. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Technical Outlook: Technically, ERIC is in a strong uptrend. Immediate support is located at $12.73, while resistance sits at $13.77. Short-term momentum is weak, with the stock down 4.2% recently.
Market Sentiment: ERIC has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. However, the stock is trading significantly above the average Wall Street target of $10.45. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
EXTENDED
Historical Trading Range
$11.75 -
$13.24
Company Quality Score
63/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
51.0%
All Signals
- BEARISH: Price extended above range
- BULLISH: Strong technical setup (75/100)
- BULLISH: High volume confirmation
- BEARISH: Downward momentum (-4.2%)
- BEARISH: Trading 20.6% above Wall St target ($10.45)
- BULLISH: Expecting earnings turnaround to 4.8% growth with -10.3% revenue growth
Trading Range Analysis
30-Day Trading Range
$11.75 -
$13.24
Current vs Trading Range
EXTENDED
Support & Resistance Levels
Support Level
$12.73
Resistance Level
$13.77
Current Trend
Strong Uptrend
Technical data as of
Jun 3, 2026
Fundamental Context
Forward P/E (Next Year Est.)
19.38
Wall Street Target
$10.45
(-20.6%)
Revenue Growth (YoY)
-10.3%
Earnings Growth (YoY)
-78.5%
Profit Margin
10.9%
Valuation Premium vs History
+4.8% premium
PE vs Historical
19.4 vs 16.8
STRETCHED
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+4.8%
(market-implied from PE analysis)
1-Year Target
$13.79
(+5%)
2-Year Target
$14.45
(+10%)
3-Year Target
$15.15
(+15%)
3-Yr Target (if PE normalizes)
(PE: 19→17)
PE COMPRESSION
$13.13
(0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.9, Growth: 8.7%)
$19.10
(+45%)
Base:
(SPY PE: 19.4, Growth: 8.7%)
$16.90
(+28%)
Bear:
(PE: 16.5, Growth: 8.7%)
$14.36
(+9%)
📈
Valuation based on Current Earnings
Trailing PE: 16.10 | Current EPS (TTM): $0.81
Bull Case
$12.02
(-6%)
Analyst growth -16.2%, PE expands to 17.7
Base Case
$10.93
(-14%)
Market implied -16.2%, PE stable at 16.1
Bear Case
$8.87
(-30%)
Severe decline -20.0%, PE contracts to 13.7
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: June 03, 2026 5:44 PM ET
Data refreshes hourly during market hours. Next update: 6:44 PM
Data refreshes hourly during market hours. Next update: 6:44 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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