Ericsson Has 43% Upside Potential Over The Next 3 Years

Aristofanis Papadatos
8.7K Followers

Summary

  • Ericsson's stock has potential for a 43% upside due to the expected recovery of its business and the possibility of lower interest rates.
  • The company's growth driver is the rollout of 5G networks, which is expected to regain momentum later this year or early next year.
  • Ericsson is currently trading at only 7.7 times its expected earnings in 2025.
Ercisson group head office

Roland Magnusson

I have always avoided Ericsson (NASDAQ:ERIC) due to its highly volatile performance record and its unreliable business performance. The stock has plunged 34% over the last 12 months, to a fresh 10-year low. The daunting underperformance of the stock vs. the S&P 500 (-34% vs. +17%) has resulted

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8.7K Followers
I am a chemical engineer with a MS in Food Technology and Economics, and a MENSA member. I am the author of the book "Investing in Stocks and Bonds: The Early Retirement Project" (2024):I am also the author of the book "Mental Math: How to perform math calculations in your mind".I am also the author of 2 other mathematics books ("Arithmetic calculations without a calculator" and "Word Problems") and perform almost all the calculations in my mind, without a calculator, making it easier to make immediate investing decisions among many alternatives. I invest applying fundamental and technical analysis and mainly use options as a tool for both investing and trading. I achieved my goal of financial independence at the age of 45. In my spare time, I follow Warren Buffett's principle: "Some men read playboy. I read financial statements".

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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