#2 - Ericcson (NASDAQ:ERIC)
Ericcson (NASDAQ: ERIC) - Ericcson was one of the stocks synonymous with the tech bubble of the early 2000s. At its peak, the stock was priced at over $125 per share. Then came the crash. At one point, ERIC’s stock was down to $2 per share. The recovery has never quite come, with a stock price hanging around $8 for the past 15 years. Part of this was due to declining margins and stubborn adherence to a “growth-above-all” mindset that was reminiscent of the dot-com era. But it seems that in late 2018, the company began to see the light, and with it may be forging its way to profits. Aggressive cost cutting along with an increase in revenue not only allowed the company to show an increase in its gross margin, but it also was able to post positive earnings. Ericcson is looking to benefit from the build-out of the 5G network, even as they are winding up their 4G work in China. However, in the telecom industry, cycles are measured in quarters so Ericcson should continue to post increased revenues which along with its cost-cutting should mean solid margins. All of which can point to profits and share price growth.
About Telefonaktiebolaget LM Ericsson (publ)
Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides mobile connectivity solutions for telcom operators and enterprise customers in various sectors in North America, Europe, Latin America, the Middle East, Africa, North East Asia, South East Asia, Oceania, and India. It operates in four segments: Networks; Cloud Software and Services; Enterprise; and Other.
Read More - Current Price
- $8.06
- Consensus Rating
- Sell
- Ratings Breakdown
- 0 Buy Ratings, 1 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $6.70 (16.9% Downside)
