ERIC Stock Analysis: Buy, Sell, or Hold?
ERIC - Ericsson American Depositary Shares
$10.80
-0.09 (-0.83%)
▼
HOLD
MODERATE Confidence
Last Updated: January 30, 2026
Earnings: Apr 17, 2026
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD: ERIC is fairly valued with market pricing in 1.5% annual growth. Fine to hold or accumulate slowly on dips.
📊 HOLD: ERIC is fairly valued with market pricing in 1.5% annual growth. Fine to hold or accumulate slowly on dips.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$9.05
Based on -2.7% avg growth
INTRINSIC VALUE TODAY
$5.62
Trading above fair value
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 16.3x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: ERIC is currently trading at $10.80, which is considered extended relative to its 30-day fair value range of $9.28 to $10.37. The stock's valuation (Forward PE: 17.1) is in line with its historical norms (16.3). At these levels, the market is pricing in 1.5% annual earnings growth. This growth rate appears achievable given the company's track record, suggesting the valuation is rational.
Technical Outlook: Technically, ERIC is in a strong uptrend. Immediate support is located at $9.21, while resistance sits at $11.22.
Market Sentiment: ERIC has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. 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 uptrend. Immediate support is located at $9.21, while resistance sits at $11.22.
Market Sentiment: ERIC has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. 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
EXTENDED
Fair Price Range
$9.28 -
$10.37
Company Quality Score
62/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
55.7%
Protect Your Profits
Holding ERIC? Use our AI-powered strategies to protect your downside while keeping your long-term position.
View Profit Protection PlanAll Signals
- BEARISH: Price extended above range
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- BEARISH: Trading above Wall St target ($9.90)
- NEUTRAL: Market pricing in 1.5% annual earnings growth - fairly valued
Fair Price Analysis
30-Day Fair Range
$9.28 -
$10.37
Current vs Fair Value
EXTENDED
Support & Resistance Levels
Support Level
$9.21
Resistance Level
$11.22
Current Trend
Strong Uptrend
Fundamental Context
Forward P/E (Next Year Est.)
17.05
Wall Street Target
$9.90
(-9.1%)
Revenue Growth (YoY)
-5.0%
Earnings Growth (YoY)
79.2%
Profit Margin
12.0%
Valuation Premium vs History
+1.5% premium
PE vs Historical
17.1 vs 16.3
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+1.5%
(market-implied from PE analysis)
1-Year Target
$11.05
(+2%)
2-Year Target
$11.22
(+3%)
3-Year Target
$11.39
(+5%)
3-Yr Target (if PE normalizes)
(PE: 17→16)
PE COMPRESSION
$10.89
(0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.3, Growth: -9.3%)
$10.64
(+-2%)
Base:
(SPY PE: 17.0, Growth: -9.3%)
$8.14
(-25%)
Bear:
(PE: 14.5, Growth: -9.3%)
$6.92
(-37%)
📈
Valuation based on Current Earnings
Trailing PE: 11.22 | Current EPS (TTM): $0.97
Bull Case
$7.88
(-27%)
Analyst growth -34.1%, PE expands to 12.3
Base Case
$7.17
(-34%)
Market implied -34.1%, PE stable at 11.2
Bear Case
$7.40
(-32%)
Severe decline -20.0%, PE contracts to 9.5
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Last updated: January 31, 2026 5:17 AM ET
Data refreshes hourly during market hours. Next update: 6:17 AM
Data refreshes hourly during market hours. Next update: 6:17 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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Advanced ERIC Option Strategies
Professional options setups generated by AI based on today's ERIC price and gamma walls.
