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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 $3.93, marking a +1.55% move from the previous day. This move lagged the S&P 500's daily gain of 3.25%. At the same time, the Dow added 3.84%, and the tech-heavy Nasdaq gained 3.06%.

Heading into today, shares of the technology company had lost 2.27% over the past month, outpacing the Computer and Technology sector's loss of 8.18% and the S&P 500's loss of 9.87% in that time.

Investors will be hoping for strength from NOK as it approaches 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 $5.83 billion, up 1.99% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.27 per share and revenue of $26.11 billion, which would represent changes of +8% and +0.12%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for NOK. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 2.68% lower. NOK currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, NOK is holding a Forward P/E ratio of 14.2. This valuation marks a discount compared to its industry's average Forward P/E of 18.6.

We can also see that NOK currently has a PEG ratio of 0.75. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Wireless Equipment stocks are, on average, holding a PEG ratio of 1.9 based on yesterday's closing prices.

The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 109, putting it in the top 43% 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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