ERIC Stock Analysis: Buy, Sell, or Hold?
ERIC - Ericsson American Depositary Shares
$11.38
-0.34 (-2.90%)
▼
5d:
-6.87%
30d:
-14.05%
90d:
+0.53%
HOLD
LOW Confidence
Analysis Updated: Jun 23, 2026 12:00 AM ET
Earnings: Jul 14, 2026
19d
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD: ERIC shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
📊 HOLD: ERIC shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$15.62
Based on 6.3% avg growth
INTRINSIC VALUE TODAY
$9.70
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 17.0x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: ERIC is currently trading at $11.38, which is considered oversold relative to its 30-day fair value range of $11.84 to $13.30. The stock's valuation (Forward PE: 16.8) is in line with its historical norms (17.0). 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 currently testing key support at $11.36. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Technical Outlook: Technically, ERIC is in a strong downtrend. The price is currently testing key support at $11.36. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
OVERSOLD
Historical Trading Range
$11.84 -
$13.30
Company Quality Score
57/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
72.4%
All Signals
- BULLISH: Price oversold vs 30-day range
- NEUTRAL: Mixed technical signals (40/100)
- BULLISH: High volume confirmation
- BEARISH: Trading above Wall St target ($10.45)
- CAUTION: Recommendation downgraded due to -6.9% 5-day decline
Trading Range Analysis
30-Day Trading Range
$11.84 -
$13.30
Current vs Trading Range
OVERSOLD
Support & Resistance Levels
Support Level
$11.36
Resistance Level
$12.41
Current Trend
Strong Downtrend
Technical data as of
Jun 23, 2026
Fundamental Context
Forward P/E (Next Year Est.)
16.80
Wall Street Target
$10.45
(-8.2%)
Revenue Growth (YoY)
-10.3%
Earnings Growth (YoY)
-78.5%
Profit Margin
10.9%
Valuation Discount vs History
-0.3% cheaper
PE vs Historical
16.8 vs 17.0
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-0.3%
(market-implied from PE analysis)
1-Year Target
$11.35
(0%)
2-Year Target
$11.31
(-1%)
3-Year Target
$11.28
(-1%)
3-Yr Target (if PE normalizes)
(PE: 17→17)
$11.41
(+0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: 8.6%)
$18.91
(+66%)
Base:
(SPY PE: 16.8, Growth: 8.6%)
$14.59
(+28%)
Bear:
(PE: 14.3, Growth: 8.6%)
$12.40
(+9%)
📈
Valuation based on Current Earnings
Trailing PE: 14.84 | Current EPS (TTM): $0.79
Bull Case
$11.05
(-3%)
Analyst growth -14.3%, PE expands to 16.3
Base Case
$10.05
(-12%)
Market implied -14.3%, PE stable at 14.8
Bear Case
$7.97
(-30%)
Severe decline -20.0%, PE contracts to 12.6
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 16.8 to 17.0
Stabilization Target:
$11.51
(+1.2%)
PE Expansion Potential:
+1.2%
Share & Embed Analysis
Last updated: June 23, 2026 11:34 PM ET
Data refreshes hourly during market hours. Next update: 12:34 AM
Data refreshes hourly during market hours. Next update: 12:34 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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