5.23 +0.08 (1.55%)
Pre-Market: 5:03AM EDT
|Bid||5.19 x 43500|
|Ask||5.23 x 312700|
|Day's Range||5.14 - 5.19|
|52 Week Range||4.71 - 6.65|
|Beta (3Y Monthly)||-0.03|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||0.11 (2.13%)|
|1y Target Est||6.62|
The stock market is never a sure thing, with even the most seasoned investors placing the occasional wrong bet. So how are investors supposed to avoid this pitfall? One simple strategy can come in handy: look for stocks with exceptional potential for growth. These stocks with huge upside potential can make especially compelling investments. We turned to the TipRanks stock screener to help us pinpoint 3 stocks that are poised to outperform the broader market over the next twelve months. We filtered the results to show stocks with “strong buy” consensus ratings, narrowing our search down to the stocks with over 30% upside potential from the current share price.Let’s take a closer look at these 3 ‘Strong Buy’ stocks that analysts believe could soar: Nokia Corporation (NOK) - 34% UpsideWhile a complete 5G takeover won’t happen in 2019, Nokia is expecting the game-changing technology to fuel solid growth.The company has already started preparing for when the 5G era is ushered in, making a significant investment in upgrading its infrastructure. Nokia already has 45 5G-related hardware contracts throughout the world. This is on top of the 1,500 5G-related patent families that NOK has filed patents on. Furthermore, the company has placed a substantial focus on expanding the enterprise segment of its business. It has acquired 32 new enterprise customers, adding to the 150 it gained in 2018. While the telecommunications company faces stiff competition, one top analyst believes its superior product offering will give it the advantage.“We believe only Huawei and Nokia have full end-to-end product portfolios with wireless, fixed networks, and IP routing solutions, positioning Nokia for leadership with the top carriers as networks transition to 5G. Further, with Huawei still potentially banned from certain markets, we view Nokia as the only global supplier with an end-to-end solution, as evidenced by leading global carriers choosing Nokia as a partner for 5G deployments,” said Canaccord's Michael Walkley, a five-star analyst according to TipRanks. As a result, Walkley reiterated his Buy rating on NOK stock, with a 12-month price target of $7.00, implying 34% upside from current levels. In the long-term, Walkley believes the company can emerge as an industry leader. “Further, we anticipate an increasing revenue mix from higher-margin regions as the U.S., Japan, and Korea represent some of the early adopters of 5G investments. We also anticipate higher-margin software and enterprise sales will grow faster than the company average and contribute to longer-term margin expansion,” he explained. TipRanks’ data shows a small but bullish camp backing this telecoms equipment maker. The ‘Strong Buy’ stock has amassed 3 ‘buy’ ratings in the last three months. The 12-month average price target stands tall at $7.50, marking nearly 43% in return potential for the stock. (See NOK’s price targets and analyst ratings on TipRanks) Netflix (NFLX) - 37% UpsideAfter its recent second-quarter earnings release showed a loss of 126,000 new subscribers, investors were left wondering whether Netflix's slip up was a temporary occurrence or a long-term trend. However, some analysts maintain that the streaming platform’s long-term growth narrative remains unchanged.The drop in subscribers has been attributed to the weaker content lineup in the quarter. That being said, the company is already making up for it with the third season of its hit show, Stranger Things. In just four days after its release, over 40 million households had seen at least part of the season. The stronger content slate includes new seasons of fan favorites La Casa de Papel, The Crown and Orange Is the New Black as well as Robert De Niro’s film, The Irishman.Five-star J.P. Morgan analyst, Doug Anmuth, argues that the impressive content lineup puts Netflix on the path towards long-term growth: “It may not be easy, but we believe its net adds target is achievable given the slate and shift of marketing spend into the second half of the year. Importantly, we do not believe Netflix is factoring in much for new mobile-only subs in India in 2H 2019 numbers.”Based on the above, Anmuth the analyst believes shares could jump by 37% over the next twelve months, as he reiterates a Buy rating and $450 price target on NFLX stock. Netflix also stands to benefit from the continued shift away from linear TV. Worldwide internet penetration is only expected to increase, with the number of users reaching 5.5 billion by 2025 according to current estimates. The TV streaming penetration rate is expected to rise at a similar rate as internet households shift to more convenient and less expensive internet TV.While the company does face competition from Disney’s (DIS) new streaming service, Anmuth doesn’t believe that it will have a major effect on Netflix's subscribers. Wall Street is on the same page. This ‘Strong Buy’ received 26 Buy ratings vs 5 Holds and 1 Sell over the last three months. Not to mention its $412 average price target suggests 33% upside potential from current levels. (See NFLX’s price targets and analyst ratings on TipRanks) World Wrestling Entertainment (WWE) - 77% UpsideA series of injuries as well as the drop in ratings and attendance weighed heavily on WWE earlier this year. That being said, the wrestling media company has come a long way, showing investors that it’s making moves in the right direction.In late July, WWE posted a Q2 earnings beat in addition to maintaining that it will reach its adjusted OIBDA target for full year 2019 of at least $200 million. Marci Ryvicker, a five-star analyst, notes that while management’s tone wasn’t overly exciting, it seemed to be more optimistic than it has been in a while.The company has made progress in improving the brand with continued investments going towards increasing audience engagement and ultimate franchise value.Not to mention several catalysts could work in WWE’s favor. On July 24, the company started transitioning to Network 2.0, with the upgraded network featuring an on-demand service. WWE can also stand to gain from sponsorship revenues as WWE is vastly under-monetized in relation to other sports.Based on these positive developments, Ryvicker rates WWE stock a Buy with $127 price target, which implies about 77% upside from current levels. While Ryvicker notes that WWE is trading above the Wolfe Diversified Entertainment Index, it continues to trade at a lower price than other niche sports even though it has demonstrated much faster OIBDA growth.“We like the LT focus and commitment of this management team, even if communication may sometimes falter. We also got a bunch of data points that suggest engagement metrics will continue to improve,” Ryvicker added. All in all, despite a a somewhat disappointing first quarter, WWE stock is ready to punch back! In the last three months, the stock has won 6 back-to-back 'buy' recommendations. With a return potential of close to 30%, the stock's consensus price target lands at $95.00. (See WWE’s price targets and analyst ratings on TipRanks)
The necessary technologies to usher in the 5G era -- particularly in the United States -- are only just now becoming available, potentially making Nokia (NYSE:NOK) a solid defensive play at this point. 5G is Coming, Ready or NotSource: Shutterstock 2019 isn't going to be the "year of 5G." Although 5G service is available in some select locations, it's not yet offered in most places. Smartphones must also be built with 5G-compatible components, and most of the smartphones in use today don't meet that criteria.However, that picture could be, and likely will be, different a year from now.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAT&T (NYSE:T) says it will offer nationwide 5G by the end of 2020. Ditto for T-Mobile (NASDAQ:TMUS). Just as importantly, many more 5G-compatible major-brand phones will be readily available in 2020. The first 5G-capable iPhone from Apple (NASDAQ:AAPL) is supposed to debut next year, which has already inspired something of a race.Consumers will do their part, too. Once some of them experience wireless connection at least speeds ten times faster than the current 4G norm, they'll clamor for game-changing 5G devices. * 7 Great Small-Cap Stocks to Buy Deal Growth Bodes Well for Nokia StockThe infrastructure needed to make 5G a reality is being put in place now.In June,NOK announced it had inked 42 different 5G-related hardware deals (that number has since been upped to 45) across the globe. According to NOK, that's more than any other supplier has confirmed. Based on those numbers, it appears that Nokia's rival, Ericsson (NASDAQ:ERIC). is winning about one-third fewer 5G deals than NOK.Both statements are contentious, and questionable. Huawei says two-thirds of 5G installations outside of China utilize the hardware and corresponding software it offers, while Ericsson paints an obscure picture that at least implies it's holding its own against NOK.One thing is clear, though; Nokia is winning some business, but most of the deals have yet to generate reportable revenue that can meaningfully boost Nokia stock. Those deals won't generate reportable revenue until the installations they're facilitating are completed and up and running.How much revenue NOK has already lined up from its deals isn't clear, and some of the projects can still be canceled.By and large though, NOK has already lined up a great deal of new, incremental revenue that will start flowing in the second half of 2019 and then grow through 2020. Barring an outright, global economic meltdown, most of those 5G contracts should be completed by the end of next year. New ones will be added in the meantime. Looking Ahead for NOK StockConsumers have to have food and their mobile internet service, their usual guilty pleasures. As a result, those are two of the few slivers of the market that are shielded from macro pain.Nokia's top line is expected to drop 1.5% this year, but next year's anticipated 3% improvement is more significant than it may seem to be on the surface. That's because the rebound sets the stage for considerable earnings growth.While this year's average outlook by analysts for a profit of 27 cents per share of NOK stock only matches last year's EPS, the pros, on average, are calling for its EPS to jump to 41 cents in 2020. Most of that top and bottom line growth is the result of anticipated new 5G-related revenue.Assuming Nokia's 2020 EPS comes in at 41 cents, by the way, Nokia stock now has a forward-looking price-earnings ratio of only 12.5.The trick going forward is getting the masses to believe in the company's outlook enough to shake Nokia stock out of its slump. NOK still has enough firepower to inspire such buying if the company manages to garner enough attention from the Street.As of the time of this writing, James Brumley did not hold a position in any of the aforementioned securities. To learn more about James, visit his site at jamesbrumley.com, or follow him on twitter at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post Nokia's 5G Business Makes NOK Stock a Defensive Option appeared first on InvestorPlace.
U.S. sanctions against Chinese tech giant Huawei were suspended through Monday, Aug. 19. What the Trump administration does next has big implications.
Per CommScope (COMM), its investment to develop more efficient solutions in the field of digital distributed antenna systems goes back many years.
While the ideas around 5G might seem futuristic, it’s a technology Nokia’s Monisha Jain has been contemplating for years.
The wait for Nokia (NYSE:NOK) stock to gain traction continues. A second-quarter earnings and revenue beat sent its shares surging higher. However, Nokia stock has almost fallen back to the $5.20 per share level where it traded before the company released its quarterly report.Source: Shutterstock NOK can benefit tremendously from the adoption of 5G. But until the company delivers profits and increases investors' confidence, Nokia stock will struggle. Reinvention, Low Valuation Have Not Helped Nokia StockThanks to its purchase of Alcatel-Lucent in 2016, Nokia has reinvented itself as a telecom-equipment maker. Consequently, Nokia's equipment has helped facilitate the transition to 5G service. While NOK's reinvention should have helped Nokia stock, that hasn't been the case so far.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOn January 14, 2016, the day of the Alcatel deal, Nokia traded at an adjusted price of $6.39 per share. Today, Nokia stock sells for around $5.22 per share, meaning that NOK has lost more than 16% of its value in the last 3.5 years. * 15 Growth Stocks to Buy for the Long Haul After the downturn, NOK is a reasonably-priced stock. The decline has taken its forward price-earnings (PE) ratio to about 13. Analysts' average estimate predicts that Nokia's profit won't rise this year. However, the average estimates call for an earnings increase of 51.9% next year and average annual profit growth of 23.9% over the next five years, as more consumers and businesses begin to use 5G.Unfortunately, NOK stock has burned investors before. Of course, Nokia was blindsided by the advent of the smartphone. I have recommended NOK repeatedly, only to always see it fail to gain traction. Those who listened to me have collected a dividend, but Nokia stock has not delivered a sustained rally. Can Nokia Stock Finally Recover?So what will boost Nokia stock? InvestorPlace contributor Thomas Niel believes NOK will not move much in the near-term. However, he also thinks "new developments on the 5G front" could turn into the catalyst Nokia needs.But telecom companies can turn to equipment makers besides NOK, including Ericsson (NASDAQ:ERIC), Cisco Systems (NASDAQ:CSCO), and Juniper Networks (NYSE:JNPR).NOK traded above $60 during the height of the dot-com bubble. It surpassed $40 per share in 2007 when its share of the cell phone market was 49.4%. That year, Apple's (NASDAQ:AAPL) introduction of the iPhone pushed NOK into a descent from which it never recovered. As a result, confidence in Nokia has dropped. The company will need to restore that confidence if it wants to spark a recovery in NOK stock. Should Investors Buy NOK?I see no evidence that Nokia will become the leader of the telecom-equipment sector. Most other investors probably feel the same way For this reason, NOK stock has traded between the high-$3s per share and the high $8s per share range since 2013. Given this pattern, investors can probably forget about NOK stock reaching $40 or $60 anytime soon.However, once 5G is adopted more extensively, Nokia stock could break out of its current range. Historically, NOK has traded at an average P/E ratio of 25.3. If NOK meets analysts' average 2019 EPS estimate of 27 cents, and its PE multiple rises to its historic average of 25.3, NOK stock price would reach $6.83. If its 2020 EPS reaches the average estimate of 41 cents per share, and its PE ratio rises to 25.3, the stock price would reach $10.37.If NOK, boosted by the 5G revolution finds a way to beat the average estimates, the long-awaited recovery of Nokia stock could finally materialize.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 15 Growth Stocks to Buy for the Long Haul * 5 More Cloud Stocks With Plenty of Potential * 5 Clean Energy ETFs to Buy for 2019 The post Multiple Expansion, 5G Can Boost Nokia Stock appeared first on InvestorPlace.
CenturyLink (CTL) agrees to pay $550,000 to the U.S. Treasury and has committed to a compliance plan designed to protect consumers and prevent future cramming.
The products are likely to facilitate Motorola (MSI) to keep networks secure against cybersecurity threats through customized risk assessments and round-the-clock security monitoring.
Top-line growth on a year-over-year basis, backed by higher sales at Enterprise Technology business, supports Ubiquiti's (UBNT) fiscal fourth-quarter earnings.
Higher revenues on a year-over-year basis at both satellite services and government systems segment drive Viasat's (VSAT) fiscal first-quarter results.
Nokia (NYSE:NOK) stock saw a brief pop last month thanks to an earnings beat … but can that move in NOK stock last much longer?Source: Shutterstock The release of second-quarter financials on July 25 boosted shares from $5.18 per share up to $5.60 per share. However, since then, Nokia stock has fallen back to about $5.40 share.Increased demand for 5G technology helped improve sales 7% year-over-year. But the company continues to post net losses due to restructuring and impairment charges. With a turnaround still in progress, is NOK worth a buy today?InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhile the company has positive catalysts in the works, Nokia has missed the mark many times in the past. Let's take a closer look, and see if there is additional upside for Nokia stock. NOK Earnings: A Deeper LookThe company's financials are clouded by goodwill impairment and amortization charges. This is primarily related to the company's 2016 merger with Alcatel-Lucent. There are also restructuring charges related to their cost savings plan. With this in mind, let's take a look at the company's adjusted earnings. Adjusted (non-IFRS) operating profits exclude these charges. This provides a clearer picture of Nokia's operating performance. Non-IFRS operating profits were up 35% year-over-year. Adjusted earnings-per-share (EPS) of 0.05 euros were up 67% from the prior year's quarter. * 7 Winning High-Yield Dividend Stocks With Payouts Over 5% With annual cost savings of $700 million euros anticipated by 2020, the company has runway to improve operating margins. In terms of organic growth, the 5G revolution provides plenty of gas to grow revenues. Nokia's full-year outlook projects adjusted EPS of 0.25-0.29 euros. The company anticipates additional earnings growth in 2020, with projected adjusted EPS of 0.37-0.42 euros/share for next year.As InvestorPlace contributor James Brumley pointed out last month, Nokia has been landing 5G contracts left and right. NOK has signed over 42 end users, including China Mobile (NYSE:CHL), China Unicom (NYSE:CHU) and Sprint (NYSE:S). But the company still needs to execute. This presents a material risk for NOK stock. The company has set up high expectations. If they fail to deliver, new opportunities could dry up, sending NOK shares lower.There are additional risks to consider. As 5G reaches critical mass, competition will likely heat up. The U.S.-China trade war could accelerate, negatively impacting Nokia's business in both countries. But what does this mean for investors entering Nokia stock today? Can they enter the stock at a discount, or will they have to pay a premium? Let's take a look at the valuation of NOK stock, and see how it stacks up to peers. Nokia's ValuationNOK stock currently trades at a trailing twelve month Enterprise Value/EBITDA (EV/EBITDA) ratio of 10.1. This is a slight discount to competitors such as Cisco (NASDAQ:CSCO), which trades at an EV/EBITDA ratio of 13.8. Nokia stock also trades at a discount other telecom equipment manufacturers. LM Ericsson (NASDAQ:ERIC), for example, trades at an EV/EBITDA ratio of 11.6; Motorola Solutions (NYSE:MSI) trades at an EV/EBITDA ratio of 16.7.It is important to note that NOK has lower EBITDA margins. The company's EBITDA margins are 11.4%, which pales in comparison to both Cisco and Motorola Solutions. Cisco has EBITDA margins of 30.8%. Motorola Solutions has EBITDA margins of 26.2%. However, the company's operating margins are in line with LM Ericsson, which has an EBITDA margin of 9.8%.But is this discount warranted?Nokia has dropped the ball many times in the past. This under-performance has burned contrarian investors trying to call a bottom. Is the 5G revolution Nokia's "this time it's different" moment? The company faces many risks in executing the 5G rollout. But much of this negative sentiment is priced into shares, as seen by the discount to peers. This means investors could see tremendous upside if the company's 5G sales meet expectations.Nokia stock presents a high risk/high return opportunity for investors. But does this make the stock a screaming buy? While the company's future prospects are not set in stone, the positive catalysts in play make this opportunity a strong buy for long-term investors. * 7 Stocks the Insiders Are Buying on Sale Bottom Line on NOK StockNokia releases third-quarter earnings in late October. This gives investors several months to enter a position in NOK stock before additional information makes the bull case (or bear case) for shares. NOK trades at a discount to peers. If they can execute 5G successfully, the company's fortunes could materially improve. This would be a shot in the arm for Nokia stock.As it stands now, what's the play with NOK?In the short-term, investors may be not see upside. Shares will likely trade sideways, pending new developments on the 5G front. However, long-term, Nokia may be the right contrarian play in the telecom space. For investors looking for speculative opportunities in large-cap stocks, Nokia stock may just be a buy.As of this writing, Thomas Neil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Internet Stocks Getting Hammered * 6 Big Growth ETFs to Buy For the Second Half of 2019 * 5 Cheap Stocks to Buy Now That the Fed Cut Rates The post Will the 5G Revolution Bring Upside to Nokia Stock? appeared first on InvestorPlace.
If you want to get rich, you need to focus on what will happen, not what is happening right now.Source: Shutterstock As hockey great Wayne Gretsky famously said: You want to skate to where the puck will be, not where it has been or even where it is now.Apply this brilliant line of thinking to investing and the rewards can be extraordinary.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOf course, nobody can truly know the future, but we can see it through the innovative and powerful trends that are changing our world.We can see the future of medicine and how genetic testing will lead to a precision once thought impossible.We can see the future of transportation as the world's biggest corporations devote huge amounts of resources to electric vehicles that drive themselves.And we can see how technology innovations will change our cities. I spend a lot of time researching and thinking about the future, but even I have a difficult time imagining how different our cities will look 10 years from now.What I do know is that none of it would be possible without the next generation of wireless technology, called 5G. To make a lot of money -- like 10X your original investment or more -- you need to "skate" toward 5G. Now is the time to invest in the companies that will fundamentally reshape our entire cities. The Road to Smart CitiesWe're already seeing smarter cities as connectivity helps monitor traffic, energy, crime, and more. But the true smart city of the future is just starting to take shape.A lot of cities have held back on spending until the next generation of networks is ready to roll out. Think about what becomes possible: real-time connections between traffic cameras and the police department, traffic lights that change based on conditions at that moment, smart streets embedded with sensors that pass data to the municipalities, and so much more.One company focusing intently on developing smart cities is Alphabet (NASDAQ:GOOGL) through its Sidewalk Labs subsidiary. It was created specifically to focus on urban planning.Sidewalk Labs is working with Toronto to redevelop a section of that city along the waterfront. Toronto is one of my favorite cities in the world, and I've been through that exact area. It's beautiful but needs some work. I'm fascinated by some of the ideas.This one-two punch of sensors and real-time data, thanks to 5G, opens up a whole new world of possibilities in cities. Cars can "talk" to each other and to sensors that can read traffic flow and adjust lights to keep vehicles moving. That's just one example.In other words, the real infrastructure of cities will be the internet through 5G.A story on Wired.com about the Toronto project stated the following:This will be a fully Google-fied neighborhood, built from scratch, with a touch of Canadian flavor … Sidewalk Labs promises to embed all sorts of sensors everywhere possible, sucking up a constant stream of information about traffic flow, noise levels, air quality, energy usage, travel patterns, and waste output. Cameras will help the company nail down the more intangible: Are people enjoying this public furniture arrangement in that green space? Are residents using the pop-up clinic when flu season strikes? Is that corner the optimal spot for a grocery store? Are its shoppers locals or people coming in from outside the neighborhood? A 5G Stock to Get You StartedThe coming 5G revolution is one of seven mega-trends I highlighted in the recent 10X Innovation Summit. (Actually, there were eight, as I added a bonus trend at the end.)Identifying the big trend is step one in going after stocks that can make you 10 times your money. These are the pucks we skate to.5G is high on that list because of how it will change our world … AND it's a $12 trillion opportunity right now.I know it's a little hard to grasp. Most people think about the advertisements they see from cellular providers about the new phones coming out. It's so much more than that. It will impact industry, transportation, retail, and countless other sectors. And, of course, those newer and better 5G smartphones.The big breakthrough will be the ability to connect a lot more devices that share large amounts of data in real-time. From cloud storage to the Internet of Things to augmented reality (AR) and virtual reality (VR), 5G will allow all of the most dominant tech trends of our time to not only flourish but reach new heights -- and fit seamlessly into our daily lives.The pace will only pick up from here. That's true of the stock prices, too, which will move ahead of specific developments.One company I like is Nokia (NYSE:NOK), which makes 5G gear. I mentioned it in the 10X Innovation Summit along with a couple of other plays. (If you want to learn more about those, you can watch the replay here.) A lot of investors have forgotten about this stock and think of the old Nokia phones nobody has any more. The company now makes networking equipment and software, and there's a huge need for both as wireless communication moves into the next generation. Nokia recently beat Wall Street's earnings estimate by 100%, and the stock pays a solid dividend, too.Matthew McCall is the founder and president of Penn Financial Group, an investment advisory firm, as well as the editor of Investment Opportunities and Early Stage Investor. He has dedicated his career to getting investors into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA), +1,044% in Tesla (TSLA), +611% in Liquefied Natural Gas Limited (LNGLY), +324% in Bitcoin Services (BTSC), just to name a few. If you're interested in making triple-digit gains from the world's biggest investment trends BEFORE anyone else, click here to learn more about Matt McCall and his investments strategy today. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Internet Stocks Getting Hammered * 6 Big Growth ETFs to Buy For the Second Half of 2019 * 5 Cheap Stocks to Buy Now That the Fed Cut Rates The post 5G Stocks: How to Make Big Money on Smart Cities appeared first on InvestorPlace.
Let's talk about one of the powerful innovations I recently discussed at my 10X Innovation Summit. We can start back in 1982, when a modified Coke machine at Carnegie Mellon University became the first "connected" appliance.Source: Shutterstock By using the school's early version of the internet, students could find out what drinks were stocked.By now, you probably know the nickname for the technology within that pioneering Coke machine. We call it the "Internet of Things," or IoT for short.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAlthough this technology has been around for more than 20 years, it's only recently advanced to the point of becoming cheap enough, reliable enough, small enough, and powerful enough to spread all over the world … placing us on the doorstep of a massive technological revolution.At the center of this revolution will be an explosion in efficiency across our factories, our roads, our airports, our schools, our companies, and dozens of other key places.You've surely heard about the Internet of Things. However, I'm confident you haven't heard about the most important way it will transform the world and make our lives better. This essay will fill you in. The Awesome Power of Predictive MaintenanceThe Internet of Things is the label we've given to the coming world of connected machines and their support systems: Cars, homes, refrigerators, heating systems, lighting systems, medical devices, industrial machines, oil rigs, construction equipment, elevators, ships, etc.You name it, it's going to use advanced technology to monitor itself, monitor its surroundings, and communicate with humans and other machines via the internet.Given all the devices we use every day, it's no wonder Cisco says 500 billion devices will be connected to the Internet of Things by 2030. It's also no wonder IoT spending is projected to grow 55% and pass $1 trillion by 2022.When most people think of the Internet of Things, they think of neat consumer gadgets and tools. For example, a connected refrigerator can monitor how much milk you have and order more from the grocery store when you get low. Another neat application is being able to adjust the temperature inside your house from anywhere through your phone.The IoT's consumer applications are interesting and invaluable. But in my opinion, the truly huge value that will be created by the Internet of Things comes down to something I call predictive maintenance.Here's how … Predictive maintenance -- made possible by self-monitored and connected machines -- will produce an explosion in human efficiency … which will reduce our stress, increase our productivity, and increase our profits.Machines are wonderful things. They make travel easier and faster. They allow us to build modern civilization. They allow us to produce huge amounts of food, energy, and manufactured goods.However, machines break down.Every year, we lose billions of hours and billions of dollars to downtime caused by malfunctioning machines.If you've ever been stranded on the side of the road by your car … sat for two hours on an airport runway … or been frustrated by a computer on the fritz, you know what I'm talking about.Malfunctioning machines are the scourge of productivity and profits.The IoT is going to help with that … in hundreds of millions of ways every day around the world.When advanced sensors and connectivity allow machines to monitor themselves and communicate with us, it's a productivity game changer. It's a "downtime prevention" game changer.Instead of needing humans to monitor machines and fix them when they break, machines will be able to monitor themselves, spot problems, and fix those problems at the "least worst" times.This "predictive maintenance" will make us way more efficient and lower the price of everything.To wrap your head around the power of the IoT and the gigantic money- and time-saving potential of predictive maintenance, just think back to the last time a flat tire or engine trouble left you stranded on the side of the road …You probably spent at least an hour figuring out what went wrong and then fixing it. If it was a major problem, you simply didn't get to where you were going. If it was hot, cold, raining or snowing, it was probably a miserable experience. If you had small children with you on the trip, it was even bigger pain in the neck.Now … just think if your car could have alerted you to the problem before you left the driveway … and even ordered a mechanic to come out and fix the problem.Just think if the fix could have happened while you were cooking dinner the night before.No changing a flat tire in the rain … no waiting on a tow truck. No missing work or appointments.Just your car predicting the future … and changing it for the better.This time and money saving dynamic -- this predictive maintenance -- that the IoT promises will transform dozens of major industries.Money- and time-saving fixes will happen millions of times per day in dozens of sectors. We will fix problems before they become problems. Flying, building, driving, shipping, manufacturing, and producing energy will get easier, safer, and more efficient. This will put great downward pressure on prices.I love the idea of my refrigerator doing my grocery shopping for me. But as a financial analyst and investor, I'm much more interested in the IoT's ability to unleash tsunamis of efficiency and cost savings across dozens of industriesThat's what will drive businesses around the world to spend hundreds of billions of dollars with companies that make the IoT possible. That's what will create a big tailwind for companies like Rockwell Automation (NYSE:ROK, automated factories), Cognex (NASDAQ:CGNX, machine vision), and Nokia (NYSE:NOK, networking equipment).Predictive maintenance.Fixing small problems before they become big problems.That's what makes the IoT one of the most valuable technologies -- and one of the most promising investment trends -- in the world.Matthew McCall is the founder and president of Penn Financial Group, an investment advisory firm, as well as the editor of Investment Opportunities and Early Stage Investor. He has dedicated his career to getting investors into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA), +1,044% in Tesla (TSLA), +611% in Liquefied Natural Gas Limited (LNGLY), +324% in Bitcoin Services (BTSC), just to name a few. If you're interested in making triple-digit gains from the world's biggest investment trends BEFORE anyone else, click here to learn more about Matt McCall and his investments strategy today. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post IoT: How to Invest in One of the Most Valuable Technologies on Earth appeared first on InvestorPlace.
The last time I wrote about Nokia (NYSE:NOK) stock at the end of June, I suggested this: dividend investors should consider buying NOK stock because they'll be paid handsomely to wait for its turnaround.Source: Shutterstock Since then, Nokia has reported reasonably sound second-quarter 2019 results, sending Nokia stock up almost 7% in the subsequent six weeks. Not a bad performance for a tech company that's still losing money on an IFRS basis. Improving Financials Support NOK StockIn the first six months of 2019, Nokia had an operating loss of 581 million euros on revenue of 10.73 billion euros. In U.S. dollars, that's approximately $649 million in operating losses and $12 billion in sales.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, on a non-IFRS basis, Nokia had an operating profit for the first six months of the fiscal year of 391 million euros, or $437.2 million. That's an operating margin of 3.6%, 200 basis points lower than in the same period a year earlier. Still, this is a positive metric. * 10 Cyclical Stocks to Buy (or Sell) Now In Q2, Nokia saw its sales increase by 7%, or 5% excluding currency. Meanwhile, its operating margin increased by 160 basis points to 7.9%.For the rest of 2019, Nokia expects a weaker Q3 and a stronger Q4. Statistically, we're talking operating margins of at least 9%, non-IFRS earnings per share of at least 25 euros or 28 cents, and a small amount of positive free cash flow.Due to several headwinds, including trade-related challenges, Nokia will focus on generating 700 million euros of cost savings annually. That's one way to make profits despite the potential sale slowdown in China and elsewhere.In 2020, it expects better margins, profits, and free cash flow due to its strengthening position within the 5G market. As 5G rolls out on a global basis, Nokia's revenues and profits should continue to improve. Nokia's Dividend YieldThe company has authorized dividend payments of up to 20 euros in fiscal 2019. Management has already paid the first two five-euro dividends. The next two are virtually a sure thing. This means Nokia stock is currently yielding 4.1%.Of the 47 U.S.-listed equities with a $2 billion-plus market capitalization and a price of $7 or less, NOK stock is the 20th highest of the bunch. That's a pretty darn good feat.In my last article about NOK stock, it was trading at or below $5. Therefore, it has gained some ground while still yielding more than 4%.Since interest rates don't appear to be moving higher soon, a 4.1% dividend yield is incredibly attractive. Further, a potential equity kicker continues to make Nokia once of the best value plays for stocks trading under $7.Most of the top large-cap stocks trading under $7 are either financial, basic materials, or technology stocks. Nokia's balance sheet makes it one of the more attractive value plays of the bunch.However, as my InvestorPlace colleague Vince Martin recently said, Nokia must execute its game plan better than it has before. One solid quarter, as Martin suggests, does not make for a turnaround.However, as I said previously, there's enough meat on Nokia's bone to make NOK stock an attractive income play. Plus, you have potential capital appreciation over the next 12 to 24 months.Of course, I could change my tune after Nokia announces its Q3 numbers.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cyclical Stocks to Buy (or Sell) Now * 7 Biotech ETFs That Should Remain Healthy * 7 of the Hottest AI Stocks to Buy Now The post Is Nokia Stock the Best Cheap Play Under $7? appeared first on InvestorPlace.
Finnish telecoms equipment maker Nokia Oyj expects Brazil to host the world's biggest-ever single auction for fifth-generation (5G) spectrum next year, a senior executive told Reuters. After partnering with Uruguayan state-run carrier Antel to deploy the first 5G network in Latin America, Nokia is setting its sights on Brazil, its biggest market in the region. "We see the political will to carry out a large spectrum auction in the first quarter of 2020.
Nokia (NYSE:NOK) showed some progress in its second-quarter report last week. It even briefly boosted NOK stock: shares climbed 10% after Thursday's release. But in the last week, Nokia stock already has given back roughly half those gains.Source: Shutterstock It's not terribly hard to see why that is. Traders responded well to the company's headline beat. But investors are more cautious, and with good reason. The Q2 report follows a first quarter release that was much weaker (NOK stock actually fell 10% after that report). Full-year guidance was reaffirmed -- and so were the risks to that guidance. * 8 of the Most Shorted Stocks in the Markets Right Now More broadly, as I detailed in June, Nokia has disappointed several times before. The 5G opportunity might be different, but investors would be forgiven for not wholly trusting the company just yet.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Q2 and First Half Nokia EarningsTraders likely focused on the headline numbers here, which look strong, at least relative to expectations. Adjusted EPS of €0.05 came in €0.02 ahead of consensus. The top-line performance was more impressive: revenue rose 7.2%, about five points better than the Street projected.But that beat doesn't necessarily suggest that Nokia stock is getting back to growth. The company explained a soft Q1 as driven in part by contracts which were signed in the quarter, but didn't contribute to revenue until Q2. That timing -- somewhat -- explains the difference in how the two quarters were viewed.Taking the first half as a whole, the news hardly seems spectacular. Revenue, in constant currency, grew just 2% year-over-year. Adjusted operating profit fell 32%. And Nokia burned a whopping €2.5 billion (about US$2.75 billion) in cash. The performance so far doesn't necessarily suggest that Nokia has turned the corner. Optimism Toward NOK StockThat said, Nokia stock probably deserved some gains after the quarter -- if only due to a sort of relief rally. After Q1, it seemed unlikely that Nokia would meet its full-year EPS guidance. The consensus estimate was below the low end of the company's range. The Q2 beat gets Nokia back on track toward at least clipping the low end of the range.That's important for two reasons. First, it re-establishes some level of credibility for Nokia. Again, this is a company that has disappointed repeatedly. It sold its phone business to Microsoft (NASDAQ:MSFT) for US$7 billion in cash, which turned out to be a great deal (and a disaster for Microsoft). Six years later, NOK stock trades basically where it did after it soared on that deal.In early 2016, Nokia took control of Alcatel-Lucent via tender offer in a supposedly transformative acquisition. Nokia stock has declined since that deal was closed (and since it was announced the year before).The opportunity now comes from enormous cost-cutting -- some €500 million in savings next year -- and 5G. Nokia needs to capitalize this time, and Q2 is a modest step in that journey.Secondly, it's 2020 earnings that really matter for Nokia. Thanks in part to those cost cuts, Nokia is projecting a big step up in profits next year. Adjusted EPS is guided to rise from €0.25-€0.29 this year to €0.37-€0.42 next year. The 2020 target makes NOK look cheap: about 12.5x earnings at the midpoint of that guidance.Basically, if Nokia hits next year's target, Nokia stock is going to rise. If it doesn't, NOK at best stays dead money. The company still wrote in its release that guidance "puts significant pressure on execution in the second half." But Q2's performance at least gives the company a chance of reaching its guidance for this year. That's a step in the right direction for the company, and a reason to see a bounce in the stock. Will 5G Boost Nokia Stock?There's one more piece of good news worth highlighting. Again, cost cuts should help margins and 5G should drive growth. The question is whether, with China's Huawei facing security concerns, Nokia can outperform rival Ericsson (NASDAQ:ERIC) in 5G. Early returns look good.In fact, CEO Rajeev Suri said on the Q2 conference call that of the existing Nokia 4G LTE customers who have chosen a 5G supplier, every one of them has chosen Nokia. That suggests early strength in 5G -- and a nice base for growth going forward. It's another reason to see the report as bullish for NOK stock.Personally, I'm not quite ready to jump on board. One quarter doesn't change execution concerns, particularly with the company itself still saying guidance is at risk. With the exception of Cisco Systems (NASDAQ:CSCO), the networking space has been a difficult one for companies and investors (Juniper Networks (NYSE:JNPR), for instance has traded sideways for years now). 5G growth is important, but it's going to be offset by 4G losses.There's still a lot left for Nokia to prove. But give credit where credit is due: the company at least took a solid step forward last week.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 of the Most Shorted Stocks in the Markets Right Now * 7 Charts That Should Concern Marijuana Stock Investors * 8 Monthly Dividend Stocks to Buy for Consistent Income The post Better Execution Needed to Move NOK Stock Higher appeared first on InvestorPlace.
Higher revenue per customer account by selling additional devices and value-added services, including Unlimited Plus and Unlimited Premium rate plans, drives Sprint's (S) fiscal Q1 results.
Driven by a solid demand across land mobile radio products, services and software, Motorola (MSI) records higher revenues in second-quarter 2019.
Solid organic top-line growth and productivity in both the Americas and Europe drive Watts Water's (WTS) second-quarter financial performance.
With industry-leading wireless products and services, Verizon (VZ) records healthy improvement in adjusted earnings in second-quarter 2019.