ERIC Stock Analysis: Buy, Sell, or Hold?
ERIC - Ericsson American Depositary Shares
$11.72
0.37 (3.26%)
▲
5d:
+7.62%
30d:
+1.03%
90d:
-1.35%
BUY
HIGH Confidence
Analysis Updated: Jul 13, 2026 12:00 AM ET
Earnings: Jul 14, 2026
0d
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Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: ERIC shows strong fundamentals and good volume confirmation. Solid entry point despite fair pricing.
✅ BUY SIGNAL: ERIC shows strong fundamentals and good volume confirmation. Solid entry point despite fair pricing.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$13.67
Based on 4.2% avg growth
INTRINSIC VALUE TODAY
$8.49
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 16.9x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: ERIC is currently trading at $11.72, which is considered fair relative to its 30-day fair value range of $10.94 to $12.19. The stock's valuation (Forward PE: 17.8) is in line with its historical norms (16.9). At these levels, the market is pricing in 1.7% annual earnings growth.
Technical Outlook: Technically, ERIC is in a strong downtrend. The price is approaching resistance at $11.68. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation. The stock is showing strong short-term momentum, up 3.3% recently.
Market Sentiment: ERIC has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. However, the stock is trading significantly above the average Wall Street target of $10.18. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, ERIC is in a strong downtrend. The price is approaching resistance at $11.68. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation. The stock is showing strong short-term momentum, up 3.3% recently.
Market Sentiment: ERIC has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. However, the stock is trading significantly above the average Wall Street target of $10.18. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
FAIR
Historical Trading Range
$10.94 -
$12.19
Company Quality Score
62/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
81.9%
All Signals
- NEUTRAL: Price in fair range
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- BULLISH: Strong upward momentum (+3.3%)
- BEARISH: Trading 13.1% above Wall St target ($10.18)
- BULLISH: Expecting earnings turnaround to 1.7% growth with -10.3% revenue growth
Trading Range Analysis
30-Day Trading Range
$10.94 -
$12.19
Current vs Trading Range
FAIR
Support & Resistance Levels
Support Level
$10.72
Resistance Level
$11.68
Current Trend
Strong Downtrend
Technical data as of
Jul 13, 2026
Fundamental Context
Forward P/E (Next Year Est.)
17.79
Wall Street Target
$10.18
(-13.1%)
Revenue Growth (YoY)
-10.3%
Earnings Growth (YoY)
-78.5%
Profit Margin
10.9%
Valuation Premium vs History
+1.7% premium
PE vs Historical
17.8 vs 16.9
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+1.7%
(market-implied from PE analysis)
1-Year Target
$11.92
(+2%)
2-Year Target
$12.12
(+3%)
3-Year Target
$12.33
(+5%)
3-Yr Target (if PE normalizes)
(PE: 18→17)
PE COMPRESSION
$11.71
(0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: 4.4%)
$16.33
(+39%)
Base:
(SPY PE: 17.8, Growth: 4.4%)
$13.34
(+14%)
Bear:
(PE: 15.1, Growth: 4.4%)
$11.34
(-3%)
📈
Valuation based on Current Earnings
Trailing PE: 14.74 | Current EPS (TTM): $0.77
Bull Case
$10.68
(-9%)
Analyst growth -14.5%, PE expands to 16.2
Base Case
$9.71
(-17%)
Market implied -14.5%, PE stable at 14.7
Bear Case
$7.72
(-34%)
Severe decline -20.0%, PE contracts to 12.5
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: July 14, 2026 8:09 AM ET
Data refreshes hourly during market hours. Next update: 9:09 AM
Data refreshes hourly during market hours. Next update: 9:09 AM
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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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