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

Zacks Equity Research

Nokia (NOK) closed the most recent trading day at $4.97, moving +1.22% from the previous trading session. This move lagged the S&P 500's daily gain of 1.3%. At the same time, the Dow added 1.41%, and the tech-heavy Nasdaq gained 1.75%.

Heading into today, shares of the technology company had lost 7.71% over the past month, lagging the Computer and Technology sector's loss of 0.14% and the S&P 500's gain of 0.46% in that time.

NOK will be looking to display strength as it nears its next earnings release. In that report, analysts expect NOK to post earnings of $0.07 per share. This would mark no growth from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.31 billion, down 0.68% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.27 per share and revenue of $26.22 billion, which would represent changes of 0% and -1.36%, respectively, from the prior year.

Any recent changes to analyst estimates for NOK should also be noted by investors. 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 holding a Zacks Rank of #2 (Buy) right now.

Valuation is also important, so investors should note that NOK has a Forward P/E ratio of 18.35 right now. Its industry sports an average Forward P/E of 21.79, so we one might conclude that NOK is trading at a discount comparatively.

The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 94, putting it in the top 37% 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.


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