Nokia (NOK) Gains But Lags Market: What You Should Know
In the latest trading session, Nokia (NOK) closed at $4.33, marking a +0.23% move from the previous day. This change lagged the S&P 500's 0.91% gain on the day. At the same time, the Dow added 0.85%, and the tech-heavy Nasdaq gained 0.59%.
Prior to today's trading, shares of the technology company had lost 0.46% over the past month. This has lagged the Computer and Technology sector's gain of 8.52% and the S&P 500's gain of 5.26% in that time.
NOK will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.03, down 50% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.63 billion, down 12.03% from the year-ago period.
NOK's full-year Zacks Consensus Estimates are calling for earnings of $0.25 per share and revenue of $24.77 billion. These results would represent year-over-year changes of 0% and -5.04%, respectively.
Investors might also notice recent changes to analyst estimates for NOK. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant. NOK is currently a Zacks Rank #2 (Buy).
Digging into valuation, NOK currently has a Forward P/E ratio of 17.63. This represents a discount compared to its industry's average Forward P/E of 25.3.
It is also worth noting that NOK currently has a PEG ratio of 1.13. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Wireless Equipment industry currently had an average PEG ratio of 1.94 as of yesterday's close.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.