ERIC Stock Analysis: Buy, Sell, or Hold?
ERIC - Ericsson American Depositary Shares
$10.07
0.26 (2.65%)
▲
5d:
+4.14%
30d:
-6.67%
90d:
-14.37%
BUY
MODERATE Confidence
Analysis Updated: Jul 31, 2026 12:00 AM ET
Earnings: Oct 15, 2026
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Interactive Price Chart (1 Month)
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Bottom Line:
💡 BUY OPPORTUNITY: ERIC shows positive signals but monitor for confirmation. Market pricing in 2.1% decline. Moderate conviction.
💡 BUY OPPORTUNITY: ERIC shows positive signals but monitor for confirmation. Market pricing in 2.1% decline. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$13.25
Based on 4.9% avg growth
INTRINSIC VALUE TODAY
$8.23
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 $10.07, which is considered fair relative to its 30-day fair value range of $9.63 to $11.08. The stock's valuation (Forward PE: 15.8) is in line with its historical norms (16.8). Remarkably, the market is currently pricing in an annual earnings decline of 2.1% 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 $10.07. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: The stock shows a mixed technical setup (45/100), with neutral trendline and momentum signals. 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 $10.07. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: The stock shows a mixed technical setup (45/100), with neutral trendline and momentum signals. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
FAIR
Historical Trading Range
$9.63 -
$11.08
Company Quality Score
45/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
67.6%
All Signals
- NEUTRAL: Price in fair range
- NEUTRAL: Mixed technical signals (45/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($9.67)
Trading Range Analysis
30-Day Trading Range
$9.63 -
$11.08
Current vs Trading Range
FAIR
Support & Resistance Levels
Support Level
$9.28
Resistance Level
$10.08
Current Trend
Strong Downtrend
Technical data as of
Aug 3, 2026
Fundamental Context
Forward P/E (Next Year Est.)
15.76
Wall Street Target
$9.67
(-1.5%)
Revenue Growth (YoY)
-6.1%
Earnings Growth (YoY)
-10.9%
Profit Margin
10.8%
Valuation Discount vs History
-2.1% cheaper
PE vs Historical
15.8 vs 16.8
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-2.1%
(market-implied from PE analysis)
1-Year Target
$9.60
(-2%)
2-Year Target
$9.40
(-4%)
3-Year Target
$9.20
(-6%)
3-Yr Target (if PE normalizes)
(PE: 16→17)
$9.81
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 20.7, Growth: 5.7%)
$15.21
(+55%)
Base:
(SPY PE: 15.8, Growth: 5.7%)
$11.57
(+18%)
Bear:
(PE: 13.4, Growth: 5.7%)
$9.83
(+0%)
📈
Valuation based on Current Earnings
Trailing PE: 12.86 | Current EPS (TTM): $0.76
Bull Case
$8.80
(-10%)
Analyst growth -18.1%, PE expands to 14.1
Base Case
$8.00
(-19%)
Market implied -18.1%, PE stable at 12.9
Bear Case
$6.64
(-32%)
Severe decline -20.0%, PE contracts to 10.9
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 15.8 to 16.8
Stabilization Target:
$10.45
(+6.6%)
PE Expansion Potential:
+6.6%
Share & Embed Analysis
Last updated: August 03, 2026 2:49 PM ET
Data refreshes hourly during market hours. Next update: 3:49 PM
Data refreshes hourly during market hours. Next update: 3:49 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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