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

Zacks Equity Research

In the latest trading session, Nokia (NOK) closed at $3.04, marking a +1% move from the previous day. The stock lagged the S&P 500's daily gain of 3.35%. At the same time, the Dow added 3.19%, and the tech-heavy Nasdaq gained 3.62%.

Prior to today's trading, shares of the technology company had lost 23.99% over the past month. This has lagged the Computer and Technology sector's loss of 12.32% and the S&P 500's loss of 14.37% in that time.

NOK will be looking to display strength as it nears its next earnings release. On that day, NOK is projected to report earnings of $0.01 per share, which would represent year-over-year growth of 150%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.77 billion, up 1.03% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.26 per share and revenue of $26.08 billion, which would represent changes of +4% and -0.02%, respectively, from the prior year.

Investors might also notice 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 3.85% lower. NOK currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, NOK is holding a Forward P/E ratio of 11.49. Its industry sports an average Forward P/E of 17.75, so we one might conclude that NOK is trading at a discount comparatively.

Investors should also note that NOK has a PEG ratio of 0.61 right now. 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 was holding an average PEG ratio of 1.46 at yesterday's closing price.

The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 155, putting it in the bottom 40% 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.

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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