Ericsson (ERIC) Stock: Buy, Sell, or Hold?
ERIC - Ericsson American Depositary Shares
$10.38
-0.05 (-0.48%)
▼
5d:
-3.08%
30d:
+6.68%
90d:
+11.13%
WAIT
LOW Confidence
Analysis Updated: Oct 22, 2026 12:00 AM ET
Earnings: Oct 15, 2026
0d
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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
$10.50
Based on 0.1% avg growth
INTRINSIC VALUE TODAY
$6.52
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 $10.38, which is considered extended relative to its 30-day fair value range of $9.35 to $10.29. The stock's valuation (Forward PE: 16.5) is in line with its historical norms (16.6). Remarkably, the market is currently pricing in an annual earnings decline of 0.2% over the next few years. This aligns with recent fundamental challenges.
Technical Outlook: Technically, ERIC is in a strong downtrend. Immediate support is located at $9.34, while resistance sits at $10.76.
Market Sentiment: ERIC scores 13/100 on our bottoming-setup gauge. Note this measures entry quality, not trend direction — a low score can mean the chart is extended after a strong run (don't chase) or still falling without stabilization; better entries typically come after a pullback toward the 20-day average. Current signals suggest waiting for a better entry point before initiating new positions.
Technical Outlook: Technically, ERIC is in a strong downtrend. Immediate support is located at $9.34, while resistance sits at $10.76.
Market Sentiment: ERIC scores 13/100 on our bottoming-setup gauge. Note this measures entry quality, not trend direction — a low score can mean the chart is extended after a strong run (don't chase) or still falling without stabilization; better entries typically come after a pullback toward the 20-day average. Current signals suggest waiting for a better entry point before initiating new positions.
Quick Decision Summary
Current Position
EXTENDED
Historical Trading Range
$9.35 -
$10.29
Company Quality Score
33/100
(SELL)
Volume Confirmation
HIGH
Confidence Score
21.4%
All Signals
- BEARISH: Price extended above range
- BEARISH: Weak technical setup (13/100)
- BULLISH: High volume confirmation
- BEARISH: Trading above Wall St target ($9.52)
- WARNING: Composite score 33/100 in the bottom quintile — this cohort historically lags the market
Trading Range Analysis
30-Day Trading Range
$9.35 -
$10.29
Current vs Trading Range
EXTENDED
Support & Resistance Levels
Support Level
$9.34
Resistance Level
$10.76
Current Trend
Strong Downtrend
Technical data as of
Oct 22, 2026
Fundamental Context
Forward P/E (Next Year Est.)
16.46
Wall Street Target
$9.52
(-8.3%)
Revenue Growth (YoY)
5.8%
Earnings Growth (YoY)
-46.8%
Profit Margin
8.4%
Valuation Discount vs History
-0.2% cheaper
PE vs Historical
16.5 vs 16.6
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-0.2%
(market-implied from PE analysis)
1-Year Target
$10.36
(0%)
2-Year Target
$10.34
(0%)
3-Year Target
$10.32
(-1%)
3-Yr Target (if PE normalizes)
(PE: 16→17)
$10.41
(+0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 19.9, Growth: -3.8%)
$11.16
(+8%)
Base:
(SPY PE: 16.5, Growth: -3.8%)
$9.25
(-11%)
Bear:
(PE: 14.0, Growth: -3.8%)
$7.86
(-24%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (17x PE), but valuation improves significantly next year (16x PE) as earnings recover.
Trailing PE: 16.82 | Current EPS (TTM): $0.62
Bull Case
$11.67
(+12%)
Analyst growth 1.7%, PE expands to 18.5
Base Case
$10.61
(+2%)
Market implied 1.7%, PE stable at 16.8
Bear Case
$7.09
(-32%)
Severe decline -20.0%, PE contracts to 14.3
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 16.6
Stabilization Target:
$10.47
(+0.9%)
PE Expansion Potential:
+0.9%
Share & Embed Analysis
Last updated: October 23, 2026 4:37 AM ET
Data refreshes hourly during market hours. Next update: 5:37 AM
Data refreshes hourly during market hours. Next update: 5:37 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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