Nokia (NOK) Gains But Lags Market: What You Should Know
Nokia (NOK) closed at $4.05 in the latest trading session, marking a +1.25% move from the prior day. The stock lagged the S&P 500's daily gain of 1.44%.
Prior to today's trading, shares of the technology company had gained 3.09% over the past month. This has lagged the Computer and Technology sector's gain of 5.25% and the S&P 500's gain of 6.26% in that time.
Wall Street will be looking for positivity from NOK as it approaches its next earnings report date. On that day, NOK is projected to report earnings of $0.01 per share, which would represent no growth 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 $26.22 billion. These totals would mark changes of -23.33% and +4.67%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for NOK. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. NOK is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that NOK has a Forward P/E ratio of 17.24 right now. For comparison, its industry has an average Forward P/E of 18.89, which means NOK is trading at a discount to the group.
Also, we should mention that NOK has a PEG ratio of 11.57. 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. NOK's industry had an average PEG ratio of 2.1 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 69, putting it in the top 28% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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