Nokia (NOK) closed at $4.93 in the latest trading session, marking a -1% move from the prior day. This move was narrower than the S&P 500's daily loss of 1.07%. Meanwhile, the Dow lost 1.07%, and the Nasdaq, a tech-heavy index, lost 0.03%.
Heading into today, shares of the technology company had lost 4.78% over the past month, outpacing the Computer and Technology sector's loss of 5.41% and lagging the S&P 500's loss of 3.49% in that time.
Nokia will be looking to display strength as it nears its next earnings release. In that report, analysts expect Nokia to post earnings of $0.10 per share. This would mark year-over-year growth of 11.11%. Our most recent consensus estimate is calling for quarterly revenue of $6.27 billion, down 1.49% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.45 per share and revenue of $25.15 billion, which would represent changes of +2.27% and -4.09%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Nokia. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Nokia currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Nokia is holding a Forward P/E ratio of 11.19. This represents a discount compared to its industry's average Forward P/E of 20.13.
We can also see that NOK currently has a PEG ratio of 6.32. 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. NOK's industry had an average PEG ratio of 1.93 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 54, which puts it in the top 22% 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.
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