Nokia (NOK) Gains But Lags Market: What You Should Know

Zacks Equity Research
·3 min read

Nokia (NOK) closed at $3.88 in the latest trading session, marking a +1.57% move from the prior day. The stock lagged the S&P 500's daily gain of 1.95%. Meanwhile, the Dow gained 1.85%, and the Nasdaq, a tech-heavy index, added 1.55%.

Prior to today's trading, shares of the technology company had lost 12.59% over the past month. This has lagged the Computer and Technology sector's loss of 6.69% and the S&P 500's loss of 2.45% in that time.

Wall Street will be looking for positivity from NOK as it approaches its next earnings report date. The company is expected to report EPS of $0.01, unchanged from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.87 billion, up 8.26% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.23 per share and revenue of $25.97 billion. These totals would mark changes of -23.33% and +3.7%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for NOK. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.67% higher. NOK is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, NOK is holding a Forward P/E ratio of 16.9. This valuation marks a discount compared to its industry's average Forward P/E of 20.28.

Also, we should mention that NOK has a PEG ratio of 11.34. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Wireless Equipment industry currently had an average PEG ratio of 1.64 as of yesterday's close.

The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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