Ericsson (ERIC) Stock: Buy, Sell, or Hold?
ERIC - Ericsson American Depositary Shares
$10.31
0.30 (3.00%)
▲
5d:
+1.78%
30d:
+1.28%
90d:
-15.07%
WAIT
LOW Confidence
Analysis Updated: Sep 11, 2026 12:00 AM ET
Earnings: Oct 15, 2026
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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
$13.17
Based on 4.8% 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 $10.31, which is considered extended relative to its 30-day fair value range of $10.03 to $10.23. The stock's valuation (Forward PE: 16.5) is in line with its historical norms (16.7). Remarkably, the market is currently pricing in an annual earnings decline of 0.3% over the next few years. This aligns with recent fundamental challenges.
Technical Outlook: Technically, ERIC is in a strong downtrend. The price is approaching resistance at $10.34. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: The stock scores a mixed 49/100 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 approaching resistance at $10.34. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: The stock scores a mixed 49/100 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
EXTENDED
Historical Trading Range
$10.03 -
$10.23
Company Quality Score
45/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
43.8%
All Signals
- BEARISH: Price extended above range
- NEUTRAL: Mixed technical signals (49/100)
- BULLISH: High volume confirmation
- BEARISH: Trading above Wall St target ($9.67)
- WARNING: Composite score 45/100 in the bottom quintile — this cohort historically lags the market
Trading Range Analysis
30-Day Trading Range
$10.03 -
$10.23
Current vs Trading Range
EXTENDED
Support & Resistance Levels
Support Level
$9.90
Resistance Level
$10.34
Current Trend
Strong Downtrend
Technical data as of
Sep 11, 2026
Fundamental Context
Forward P/E (Next Year Est.)
16.53
Wall Street Target
$9.67
(-6.2%)
Revenue Growth (YoY)
-6.1%
Earnings Growth (YoY)
-10.9%
Profit Margin
10.8%
Valuation Discount vs History
-0.3% cheaper
PE vs Historical
16.5 vs 16.7
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-0.3%
(market-implied from PE analysis)
1-Year Target
$10.28
(0%)
2-Year Target
$10.25
(-1%)
3-Year Target
$10.22
(-1%)
3-Yr Target (if PE normalizes)
(PE: 17→17)
$10.32
(+0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 20.2, Growth: 5.6%)
$14.83
(+44%)
Base:
(SPY PE: 16.5, Growth: 5.6%)
$12.15
(+18%)
Bear:
(PE: 14.0, Growth: 5.6%)
$10.33
(+0%)
📈
Valuation based on Current Earnings
Trailing PE: 13.00 | Current EPS (TTM): $0.77
Bull Case
$8.92
(-14%)
Analyst growth -19.0%, PE expands to 14.3
Base Case
$8.11
(-21%)
Market implied -19.0%, PE stable at 13.0
Bear Case
$6.81
(-34%)
Severe decline -20.0%, PE contracts to 11.1
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 16.5 to 16.7
Stabilization Target:
$10.42
(+1.0%)
PE Expansion Potential:
+1.0%
Share & Embed Analysis
Last updated: September 12, 2026 7:59 PM ET
Data refreshes hourly during market hours. Next update: 8:59 PM
Data refreshes hourly during market hours. Next update: 8:59 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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