Nokia (NOK) Dips More Than Broader Markets: What You Should Know
Nokia (NOK) closed at $4.59 in the latest trading session, marking a -1.92% move from the prior day. This change lagged the S&P 500's 1.13% loss on the day. Elsewhere, the Dow lost 1.01%, while the tech-heavy Nasdaq lost 0.13%.
Heading into today, shares of the technology company had lost 5.45% over the past month, outpacing the Computer and Technology sector's loss of 11.27% and the S&P 500's loss of 7.59% in that time.
Wall Street will be looking for positivity from Nokia as it approaches its next earnings report date. This is expected to be October 20, 2022. In that report, analysts expect Nokia to post earnings of $0.10 per share. This would mark year-over-year growth of 11.11%. Meanwhile, our latest consensus estimate is calling for revenue of $6.27 billion, down 1.49% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.44 per share and revenue of $25.15 billion, which would represent changes of 0% and -4.09%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Nokia. These recent revisions tend to reflect the evolving nature of short-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 0.37% lower within the past month. Nokia is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Nokia has a Forward P/E ratio of 10.56 right now. This valuation marks a discount compared to its industry's average Forward P/E of 16.93.
Investors should also note that NOK has a PEG ratio of 5.96 right now. 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. The Wireless Equipment industry currently had an average PEG ratio of 1.85 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 66, which puts it in the top 27% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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