ERIC Stock Analysis: Buy, Sell, or Hold?
ERIC - Ericsson American Depositary Shares
$10.22
0.11 (1.09%)
â˛
5d:
-0.49%
30d:
+9.77%
90d:
-22.81%
WAIT
LOW Confidence
Analysis Updated: Aug 21, 2026 12:00 AM ET
Earnings: Oct 13, 2026
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Interactive Price Chart (1 Month)
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Bottom Line:
âšī¸ NEUTRAL: ERIC is fairly priced but lacks strong directional signals. At -0.6% expected growth, valuation appears fair. Wait for clearer setup or better entry on dips.
âšī¸ NEUTRAL: ERIC is fairly priced but lacks strong directional signals. At -0.6% expected growth, valuation appears fair. Wait for clearer setup or better entry on dips.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$13.17
Based on 4.9% avg growth
INTRINSIC VALUE TODAY
$8.18
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 16.7x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: ERIC is currently trading at $10.22, which is considered slightly high relative to its 30-day fair value range of $9.59 to $10.42. The stock's valuation (Forward PE: 16.4) is in line with its historical norms (16.7). Remarkably, the market is currently pricing in an annual earnings decline of 0.6% 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 $9.97. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock scores a mixed 54/100 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 $9.97. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock scores a mixed 54/100 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
SLIGHTLY HIGH
Historical Trading Range
$9.59 -
$10.42
Company Quality Score
48/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
58.1%
All Signals
- NEUTRAL: Mixed technical signals (54/100)
- BULLISH: High volume confirmation
- BEARISH: Trading above Wall St target ($9.67)
- WARNING: Composite score 48/100 in the bottom quintile â this cohort historically lags the market
Trading Range Analysis
30-Day Trading Range
$9.59 -
$10.42
Current vs Trading Range
SLIGHTLY HIGH
Support & Resistance Levels
Support Level
$9.97
Resistance Level
$10.36
Current Trend
Strong Downtrend
Technical data as of
Aug 21, 2026
Fundamental Context
Forward P/E (Next Year Est.)
16.42
Wall Street Target
$9.67
(-5.4%)
Revenue Growth (YoY)
-6.1%
Earnings Growth (YoY)
-10.9%
Profit Margin
10.8%
Valuation Discount vs History
-0.6% cheaper
PE vs Historical
16.4 vs 16.7
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-0.6%
(market-implied from PE analysis)
1-Year Target
$10.16
(-1%)
2-Year Target
$10.10
(-1%)
3-Year Target
$10.04
(-2%)
3-Yr Target (if PE normalizes)
(PE: 16â17)
$10.21
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 20.1, Growth: 5.7%)
$14.73
(+44%)
Base:
(SPY PE: 16.4, Growth: 5.7%)
$12.05
(+18%)
Bear:
(PE: 14.0, Growth: 5.7%)
$10.25
(+0%)
đ
Valuation based on Current Earnings
Trailing PE: 13.13 | Current EPS (TTM): $0.77
Bull Case
$8.99
(-12%)
Analyst growth -19.2%, PE expands to 14.4
Base Case
$8.17
(-20%)
Market implied -19.2%, PE stable at 13.1
Bear Case
$6.87
(-33%)
Severe decline -20.0%, PE contracts to 11.2
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
đĄ
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 16.4 to 16.7
Stabilization Target:
$10.39
(+1.7%)
PE Expansion Potential:
+1.7%
Share & Embed Analysis
Last updated: August 23, 2026 6:26 PM ET
Data refreshes hourly during market hours. Next update: 7:26 PM
Data refreshes hourly during market hours. Next update: 7:26 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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