ERIC Stock Analysis: Buy, Sell, or Hold?
ERIC - Ericsson American Depositary Shares
$12.67
0.14 (1.12%)
▲
5d:
+7.74%
30d:
+6.74%
90d:
+15.5%
HOLD
MODERATE Confidence
Analysis Updated: May 14, 2026 12:00 AM ET
Earnings: Apr 17, 2026
0d
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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
$16.41
Based on 6.8% avg growth
INTRINSIC VALUE TODAY
$10.19
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 $12.67, which is considered extended relative to its 30-day fair value range of $11.41 to $12.19. The stock's valuation (Forward PE: 17.8) is in line with its historical norms (16.6). At these levels, the market is pricing in 2.3% annual earnings growth.
Technical Outlook: Technically, ERIC is in a strong uptrend. The price is approaching resistance at $12.85. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: ERIC has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. However, the stock is trading significantly above the average Wall Street target of $10.45. 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. The price is approaching resistance at $12.85. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: ERIC has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. However, the stock is trading significantly above the average Wall Street target of $10.45. 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
Historical Trading Range
$11.41 -
$12.19
Company Quality Score
61/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
55.7%
All Signals
- BEARISH: Price extended above range
- BULLISH: Strong technical setup (75/100)
- BULLISH: High volume confirmation
- BEARISH: Trading 17.5% above Wall St target ($10.45)
- BULLISH: Expecting earnings turnaround to 2.3% growth with -10.3% revenue growth
Trading Range Analysis
30-Day Trading Range
$11.41 -
$12.19
Current vs Trading Range
EXTENDED
Support & Resistance Levels
Support Level
$11.61
Resistance Level
$12.85
Current Trend
Strong Uptrend
Technical data as of
May 14, 2026
Fundamental Context
Forward P/E (Next Year Est.)
17.76
Wall Street Target
$10.45
(-17.5%)
Revenue Growth (YoY)
-10.3%
Earnings Growth (YoY)
-78.5%
Profit Margin
10.9%
Valuation Premium vs History
+2.3% premium
PE vs Historical
17.8 vs 16.6
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+2.3%
(market-implied from PE analysis)
1-Year Target
$12.96
(+2%)
2-Year Target
$13.26
(+5%)
3-Year Target
$13.56
(+7%)
3-Yr Target (if PE normalizes)
(PE: 18→17)
PE COMPRESSION
$12.68
(+0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.0, Growth: 9.5%)
$20.68
(+63%)
Base:
(SPY PE: 17.8, Growth: 9.5%)
$16.66
(+32%)
Bear:
(PE: 15.1, Growth: 9.5%)
$14.16
(+12%)
📈
Valuation based on Current Earnings
Trailing PE: 15.42 | Current EPS (TTM): $0.81
Bull Case
$12.10
(-3%)
Analyst growth -11.9%, PE expands to 17.0
Base Case
$11.00
(-12%)
Market implied -11.9%, PE stable at 15.4
Bear Case
$8.49
(-32%)
Severe decline -20.0%, PE contracts to 13.1
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: May 14, 2026 5:34 PM ET
Data refreshes hourly during market hours. Next update: 6:34 PM
Data refreshes hourly during market hours. Next update: 6:34 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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