Investors interested in stocks from the Wireless Equipment sector have probably already heard of Ericsson (ERIC) and InterDigital (IDCC). But which of these two companies is the best option for those looking for undervalued stocks?
Ericsson (ERIC) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
After reaching an important support level, Ericsson (ERIC) could be a good stock pick from a technical perspective. ERIC recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.
ERIC posts strong Q3 earnings as cost reduction efforts and operating efficiencies lift margins despite regional weakness.
Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC ) Q3 2025 Earnings Call October 14, 2025 3:00 AM EDT Company Participants Daniel Morris - Head of Investor Relations Borje Ekholm - President, CEO, Head of Segment Enterprise & Director Lars Sandstrom - Senior VP, Head of Group Function Finance & CFO Conference Call Participants Andrew Gardiner - Citigroup Inc., Research Division Erik Lindholm-Rojestal - SEB, Research Division Sébastien Sztabowicz - Kepler Cheuvreux, Research Division Andreas Joelsson - DNB Carnegie, Research Division Sandeep Deshpande - JPMorgan Chase & Co, Research Division Daniel Djurberg - Handelsbanken Capital Markets AB, Research Division Jakob Bluestone - BNP Paribas Exane, Research Division Felix Henriksson - Nordea Markets, Research Division Ulrich Rathe - Sanford C. Bernstein & Co., LLC.
Ericsson's CEO hinted that there may be higher dividends or share buybacks coming.
Continuing cost-saving efforts boosted profitability and results also benefited from the $1 billion sale of its Iconectiv connectivity services business.
Swedish telecoms gear maker Ericsson reported a rise in quarterly core earnings that beat expectations on Tuesday, as operational improvements drove gross margins to sustainable levels despite a decline in sales.
Ericsson is upgraded to a "Buy" with a price target raised to 100 SEK, citing strong fundamentals and improving prospects. ERIC's transition from hardware to software, wind-down of restructuring charges, and robust cash position support the bullish outlook. Risks include margin pressure from open-source competition and potential legal disputes, but software growth and dividend safety offset concerns.
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Swedish telecom gear maker Ericsson said on Monday it has got an eight-year deal worth 12.5 billion Swedish crowns ($1.33 billion) to supply 5G communications equipment to VodafoneThree's UK mobile network.
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