Markets

Nokia (NOK) Stock Sinks As Market Gains: What You Should Know

In the latest trading session, Nokia (NOK) closed at $4.97, marking a -0.8% move from the previous day. This change lagged the S&P 500's 0.67% gain on the day. Elsewhere, the Dow gained 0.57%, while the tech-heavy Nasdaq added 0.61%.

Coming into today, shares of the technology company had gained 12.58% in the past month. In that same time, the Computer and Technology sector gained 10.76%, while the S&P 500 gained 7.78%.

NOK will be looking to display strength as it nears its next earnings release. On that day, NOK is projected to report earnings of $0.07 per share, which would represent year-over-year growth of 16.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.28 billion, down 0.59% from the year-ago period.

NOK's full-year Zacks Consensus Estimates are calling for earnings of $0.27 per share and revenue of $25.38 billion. These results would represent year-over-year changes of +8% and -2.71%, respectively.

Investors should also note any recent changes to analyst estimates for NOK. Recent revisions tend to reflect the latest near-term business trends. 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. The Zacks Consensus EPS estimate has moved 11.02% higher within the past month. NOK currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that NOK has a Forward P/E ratio of 18.42 right now. This valuation marks a discount compared to its industry's average Forward P/E of 20.35.

Also, we should mention that NOK has a PEG ratio of 1.18. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Wireless Equipment stocks are, on average, holding a PEG ratio of 1.93 based on yesterday's closing prices.

The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 168, which puts it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow NOK in the coming trading sessions, be sure to utilize Zacks.com.


Click to get this free report

Nokia Corporation (NOK): Free Stock Analysis Report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More