ERIC Stock Analysis: Buy, Sell, or Hold?
ERIC - Ericsson American Depositary Shares
$10.79
-0.08 (-0.74%)
▼
5d:
-2.44%
30d:
-21.47%
90d:
-5.76%
HOLD
MODERATE Confidence
Analysis Updated: Jul 2, 2026 12:00 AM ET
Earnings: Jul 14, 2026
9d
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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
$15.53
Based on 6.4% avg growth
INTRINSIC VALUE TODAY
$9.64
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 16.9x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: ERIC is currently trading at $10.79, which is considered oversold relative to its 30-day fair value range of $11.16 to $12.99. The stock's valuation (Forward PE: 16.0) is in line with its historical norms (16.9). Remarkably, the market is currently pricing in an annual earnings decline of 1.9% 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 $10.72. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: ERIC has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. 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 $10.72. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: ERIC has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. 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
$11.16 -
$12.99
Company Quality Score
52/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
52.4%
All Signals
- BULLISH: Price oversold vs 30-day range
- BEARISH: Weak technical setup (25/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($10.35)
Trading Range Analysis
30-Day Trading Range
$11.16 -
$12.99
Current vs Trading Range
OVERSOLD
Support & Resistance Levels
Support Level
$10.72
Resistance Level
$11.74
Current Trend
Strong Downtrend
Technical data as of
Jul 2, 2026
Fundamental Context
Forward P/E (Next Year Est.)
15.97
Wall Street Target
$10.35
(-4.1%)
Revenue Growth (YoY)
-10.3%
Earnings Growth (YoY)
-78.5%
Profit Margin
10.9%
Valuation Discount vs History
-1.9% cheaper
PE vs Historical
16.0 vs 16.9
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-1.9%
(market-implied from PE analysis)
1-Year Target
$10.58
(-2%)
2-Year Target
$10.38
(-4%)
3-Year Target
$10.19
(-6%)
3-Yr Target (if PE normalizes)
(PE: 16→17)
$10.78
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: 8.7%)
$18.88
(+75%)
Base:
(SPY PE: 16.0, Growth: 8.7%)
$13.84
(+28%)
Bear:
(PE: 13.6, Growth: 8.7%)
$11.76
(+9%)
📈
Valuation based on Current Earnings
Trailing PE: 14.12 | Current EPS (TTM): $0.77
Bull Case
$10.49
(-3%)
Analyst growth -12.2%, PE expands to 15.5
Base Case
$9.54
(-12%)
Market implied -12.2%, PE stable at 14.1
Bear Case
$7.39
(-32%)
Severe decline -20.0%, PE contracts to 12.0
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 16.0 to 16.9
Stabilization Target:
$11.42
(+5.8%)
PE Expansion Potential:
+5.8%
Share & Embed Analysis
Last updated: July 03, 2026 7:45 PM ET
Data refreshes hourly during market hours. Next update: 8:45 PM
Data refreshes hourly during market hours. Next update: 8:45 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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