Skip to main content
ERICEricssonSell4.5·$12.24-0.33%
Open full analysis

Ericsson (ERIC) Stock Analysis

Catalyst-Driven edge

SellVALUE-TRAP 1/5Moderate Confidence

Technology · Communication Equipment

Sell if holding. Analyst target reached at $12.24 — A.R:R is negative (-3.4) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Weak overall score: 4.5/10.

Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides mobile connectivity solutions to communications service providers, enterprises, and the public sector in the Americas, Europe, the Middle East, Africa, Northeast Asia, Southeast Asia, Oceania, and... Read more

$12.24+10.3% A.UpsideScore 4.5/10#18 of 21 Communication Equipment
QualityF-score5 / 9FCF yield72.30%
IncomeYield2.55%(5y avg 3.48%)Payout39.42%sustainable
Stop $11.38Target $13.49(resistance)A.R:R -3.4:1
Analyst target$10.45-14.6%6 analysts
$13.49our TP
$12.24price
$10.45mean
$9
$13

Sell if holding. Analyst target reached at $12.24 — A.R:R is negative (-3.4) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Weak overall score: 4.5/10. Chart setup: No clear chart pattern; technical signals are mixed. Score 4.5/10, moderate confidence.

Passes 6/9 gates (positive momentum, clean insider activity, no SEC red flags, earnings proximity 29d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and news legal. Suitability: moderate.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-06-15
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Tue, Jul 14, 202629d to earnings· next earnings call

Thesis

Rewards
Strong earnings beat streak (3/4)
Risks
Analyst target reached - limited upside remaining
Weak overall score: 4.5/10
Weak growth

Key Metrics

P/E (TTM)15.5
P/E (Fwd)18.1
Mkt Cap$40.8B
EV/EBITDA
Profit Mgn10.9%
ROE27.0%
Rev Growth-10.3%
Beta0.52
Dividend2.55%
Rating analysts28

Quality Signals

Piotroski F5/9MoatNarrow

Options Flow

P/C0.67bullish
IV56%elevated
Max Pain$6-51.0% vs spot

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

Show full disclosure ▾

About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.

Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.

Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.

No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security. Our sole compensation is subscription revenue.

No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.

Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

1 floor-breaker

Revenue shrinking — -10.3% YoY. Growth thesis broken unless recovery story develops.static

Revenue Growth
0.0
Earnings Growth
0.0
Declining revenue: -10%
GatesA.R:R -3.4=NEGATIVENEWS LEGALMomentum 4.9<5.5 (soft — BUY_NOW allowed but watch)Momentum 4.9>=4.5Insider activity: OKNo SEC red flagsEARNINGS PROXIMITY 29d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Moderate
RSI
36 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $11.59Resistance $13.77

Price Targets

$11
$13
A.Upside+10.2%
A.R:R-3.4:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Target reached (-25.7% upside)
! Negative risk/reward — downside exceeds upside
! NEWS:LEGAL

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-07-14 (29d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is ERIC stock a buy right now?

Sell if holding. Analyst target reached at $12.24 — A.R:R is negative (-3.4) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Weak overall score: 4.5/10. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $11.38. Score 4.5/10, moderate confidence.

What is the ERIC stock price target?

Take-profit target: $13.49 (+10.3% upside). Prior stop was $11.38. Stop-loss: $11.38.

What are the risks of investing in ERIC?

Analyst target reached - limited upside remaining; Weak overall score: 4.5/10; Weak growth.

Is ERIC overvalued or undervalued?

Ericsson trades at a P/E of 15.5 (forward 18.1). TrendMatrix value score: 6.1/10. Verdict: Sell.

What do analysts say about ERIC?

28 analysts cover ERIC with a consensus score of 2.8/5. Average price target: $10.

What does Ericsson do?Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides mobile connectivity solutions to...

Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides mobile connectivity solutions to communications service providers, enterprises, and the public sector in the Americas, Europe, the Middle East, Africa, Northeast Asia, Southeast Asia, Oceania, and India. It operates through Networks; Cloud Software and Services; Enterprise; and Other segments. The Networks segment offers hardware, software, and service offerings for intelligent, reliable and flexible 5G networks. This segment also provides energy-efficient RAN with an AI-native software architecture deployable on Ericsson silicon and third-party CPUs/GPUs; transport networks; and active/ passive antennas, as well as deployment and lifecycle management services. The Cloud Software and Services segment provides core networks, network management, business and operations support systems, and network operations delivered as managed services, including secure data and voice connectivity, service monetization and orchestration tools, and network management services. The Enterprise segment offers intelligent networking and advanced communications software solutions comprising global communications platform, wireless wide area networks (WWAN), and private 5G networks. The Other segment includes RedBee Media that prepares and distributes live and on-demand video services for broadcasters, sports leagues, and communications service providers. The company has a strategic collaboration with T-Mobile US, Inc for the development of AI-native Scheduler with Link Adaptation software. The company was formerly known as Allmanna Telefon AB LM Ericsson and changed its name to Telefonaktiebolaget LM Ericsson (publ) in January 1926. Telefonaktiebolaget LM Ericsson (publ) was founded in 1876 and is headquartered in Stockholm, Sweden.

Related stocks: HPE (Hewlett Packard Enterprise Comp) · CIEN (Ciena Corporation) · VIAV (Viavi Solutions Inc.) · LITE (Lumentum Holdings Inc.) · UI (Ubiquiti Inc.)
Home Stocks ERIC

Latest news

Latest News

Benzinga4d agoLegal
Benzinga13d agoProduct
Benzinga21d agoRestructuring
Benzinga28d agoProduct
Benzinga53d ago
Benzinga60d ago
Benzinga60d agoEarnings
Benzinga60d agoEarnings
Benzinga60d agoEarnings
Benzinga60d ago
Benzinga60d ago
Benzinga64d agoEarnings
Benzinga68d agoProduct