We recently compiled a list of the 10 Stocks Firm Up Amid Cautious Trading. In this article, we are going to take a look at where Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) stands against the other stocks.

Wall Street extended its lackluster performance on Tuesday, with two major indices finishing with only slight changes amid a series of key factors keeping investor sentiment neutral.

Only the Dow Jones finished in the green territory, posting a 0.37 percent gain. In contrast, the S&P decreased by 0.47 percent while the tech-heavy Nasdaq fell by 1.37 percent.

During the last trading session, ten companies defied a generally cautious market, albeit posting only modest gains. In this article, we have detailed the reasons behind their stronger performance.

To come up with Tuesday’s top gainers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

An aerial view of a large telecommunications network covering a city skyline.

Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC)

Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) rose for a second day on Tuesday, adding 4.53 percent to close at $8.30 apiece as investors cheered news of the company’s new bagged deal with India-based telecommunications operator Bharti Airtel.

In a statement, Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) said it would supply Bharti Airtel with 5G equipment to support the latter’s transition to a commercially live, full-scale 5G standalone (SA) network over the next few years.

The SA network will only power 5G frequency, as against a non-standalone (NSA) network which can operate various frequencies such as 5G, 4G, and 3G in one.

Part of the agreement will also see the deployment of Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC)’s signaling controller and 5G SA-enabled charging and policy solutions within Airtel’s network.

According to Airtel Vice-Chairman and Managing Director Gopal Vittal, the telco giant will soon roll out fixed wireless access (FWA) services on an SA basis.

Overall ERIC ranks 9th on our list of Tuesday's top gainers. While we acknowledge the potential of ERIC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ERIC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

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Disclosure: None. This article is originally published at Insider Monkey.