The Ratings Game: Telefonaktiebolaget LM Ericsson (publ) (ERIC), Canadian Natural Resources Limited (CNQ)

Over the past 52 weeks Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) has embarked on a rally that has seen it rise 41.47% and is now up by 1.92% since start of this year. The equity price rose 3.43% this week, a trend that has led to both investors and traders taking note of the stock. A look at its monthly performance shows that the stock has recorded a 5.98% gain over the past 30 days. Its equity price dipped by -0.99% over the past three months which led to its overall six-month increase to stand at 16.65%.

The shares of Telefonaktiebolaget LM Ericsson (publ) (ERIC) dropped by -4.34% or -$0.41 from its last recorded high of $9.45 which it attained on October 19 to close at $9.04 per share. Over the past 52 weeks, the shares of Telefonaktiebolaget LM Ericsson (publ) has been trading as low as $6 before witnessing a massive surge by 50.67% or $3.04. This price movement has led to the ERIC stock receiving more attention and has become one to watch out for. It jumped by 1.69% on Tuesday and this got the market excited. The stock’s beta now stands at 0.52 and when compared to its 200-day moving average and its 50-day moving average, ERIC price stands 9.14% above and 3.98% above respectively. Its average daily volatility for this week is 1.61% which is less than the 1.65% recorded over the past month.

Experts from research firms are bullish about the near-term performance of Telefonaktiebolaget LM Ericsson (publ) with most of them predicting a $9.78 price target on a short-term (12 months) basis. The average price target by the analysts will see a 8.19% rise in the stock and would lead to ERIC’s market cap to surge to $32.27B. The stock has been rated an average 2.6, which roughly stands towards the bearish end of the spectrum. Reuters looked into the 11 analysts that track Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) and find out that 6 of them rated it as a Hold. 4 of the 5 analysts rated it as a Buy or a Strong Buy while 1 advised investors to desist from buying the stock or sell it if they already possess it.

A look at ERIC technical analysis shows that its 14-day Relative Strength Index (RSI) is in a neutral zone after reaching 56.78 point. Its trading volume has lost -1980014 shares compared to readings over the past three months as it recently exchanged 3989986 shares. This means there is reduced activity from short-term traders as per session, its average trading volume is 5970000 shares, and this is 0.67 times the normal volume.

The price of Canadian Natural Resources Limited (NYSE:CNQ) currently stands at $26.92 after it went up by $0.83 or 3.18% and has found a strong support at $26.58 a share. If the CNQ price drops below that critical support, then it would lead to a bearish trend. In the short-term, a dip below the $26.24 mark would also be bad for the stock as it means that the stock would plunge by 2.53% from its current position. However, if the stock price is able to trade above the resistance point around $27.17, then it could likely surge higher to try and break the upward resistance which stands at $27.42 a share. Its average daily volatility over the past one month stands at 2.6%. The stock has plunged by 1.6% from its 52-weeks high of $26.49 which it reached on May. 22, 2018. In general, it is 18.83% above its 52-weeks lowest point which stands at $21.85 and this setback was observed on Dec. 26, 2018.

Analysts have predicted a price target for Canadian Natural Resources Limited (CNQ) for 1 year and it stands at an average $34.32/share. This means that it would likely increase by 27.49% from its current position. The current price of the stock has been moving between $26.49 and $27.08. Some brokerage firms have a lower target for the stock than the average, with one of them setting a price target as low as $25.39. On the other hand, one analyst is super bullish about the price, setting a target as high as $42.99.

The CNQ stock Stochastic Oscillator (%D) is at 29.4%, which means that it is currently oversold and its prices could jump very soon. The shares P/S ratio stands at 1.94 which compares to the 79.36 recorded by the industry or the 10.48 by the wider sector. The stock currently has an estimated price-earnings (P/E) multiple of 14.48, which is higher than the 11.69 multiple of 12-month price-earnings (P/E). The company’s earnings have gone up, with a quarterly increase rate of 3.3% over the past five years.

Analysts view Canadian Natural Resources Limited (NYSE:CNQ) as a Buy, with 1.9 consensus rating. Reuters surveyed 22 analysts that follow CNQ and found that 3 of those analysts rated the stock as a Hold. The remaining 19 were divided, with 19 analyst rating it as a Buy or a Strong Buy while 0 analysts advised investors to desist from buying Canadian Natural Resources Limited (CNQ) shares or sell it if they already own it.