|Bid||2.9460 x 0|
|Ask||2.9490 x 0|
|Day's Range||2.8900 - 3.0355|
|52 Week Range||2.0825 - 5.2590|
|Beta (5Y Monthly)||0.22|
|PE Ratio (TTM)||2,950.50|
|Earnings Date||Apr 30, 2020|
|Forward Dividend & Yield||0.10 (3.45%)|
|Ex-Dividend Date||Feb 03, 2020|
|1y Target Est||5.69|
After a slowdown, the telecom giant is on track towards a possible turnaround with a new CEO and a more aggressive 5G growth strategy Continue reading...
Let's see if Nokia Corporation (NOK) stock is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks.
Amidst growing global tumult, volatility has had the stock market swinging from extreme bearishness to brief moments of bullishness. And although the general direction is down, sticking to the game plan will pay off in the long run. Investors ought to stake claims in ongoing trends now to maximize returns over the next few years.If anything, a market correction, or even a crash, can create better prices for investors willing to buy and hold. In the technology sector, the increasingly connected world of smart devices (speakers, thermostats and doorbells, to name just a few) will result in strong sales growth for these devices and the systems that power them. While consumers are familiar with these devices as ways to make life more convenient, turning on lights or opening garages with their smartphones, the business applications should appeal to investors.Of course, this connected world needs communication infrastructure to support 5G networks and the Internet of Things (IoT). So, should the global economy slow considerably in the short-term, the demand for connectivity will not change much. For example, the sudden need to stay at home to work will increase the demand for connectivity solutions.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut these developments in the telecom sector are only one aspect of the increasingly connected world.Robert Siegel, lecturer in management at Stanford Graduate School of Business, thinks every industry will be affected by the proliferation of smart devices that can communicate with each other via the internet:"Some obvious ones include manufacturing, mobility, and healthcare. The ability to make things with speed and scale will drive large scale but simultaneously customized manufacturing of items ranging from clothing to retail to food (yes, food!). Cars will become moving collections of sensors which will impact traffic, entertainment (in and out of the vehicle) and hospitality." * 7 Small-Cap Stocks That Might Not Survive When it comes to the world of smart devices investors should invest not only in the "usual suspects" (telecom and tech stocks), but in companies that offer solutions in the automotive or retail space as well. Here are seven stocks investors should consider. Tech Stocks to Buy: Cisco Systems (CSCO)Source: Valeriya Zankovych / Shutterstock.com Cisco Systems (NASDAQ:CSCO) directly benefits from the surge of people working from home in order to minimize the spread of the coronavirus. Cisco CEO Chuck Robbins said that user activity for its video conference platform, WebEx, surged to 5.5 billion meeting minutes in just the first 11 days of March.In the cloud space, Cisco has partnered with Amazon.com (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT) to support AWS and Azure, respectively. Its software-defined network (SDN) WAN connectivity gives those platforms very tight security, as well as a way to analyze the entire network of devices. On a conference call, Cisco said that its SDN provides data on "hundreds or thousands [of] different types of network devices." That ensures the customer gets the most data out of its infrastructure.Cisco has expertise in building large-scale networks that are highly available (e.g. reliable) and secure. Customers get better tools to manage the network and to ensure its security. In effect, Cisco enables users to connect quickly to an Azure or AWS platform.Critically, Cisco has a security stack in place to handle a higher volume of users. So the end-user on, say, Office 365, should still have a good experience despite increased traffic.That's great news for Cisco. In a 5-year discounted cash flow growth exit model, assume revenue growing a modest 1.2% compounded annually. With the following metrics below, Cisco stock is worth over $50:Metrics Range Conclusion Discount Rate 9.5% - 8.5% 9.00% Perpetuity Growth Rate 2.0% - 3.0% 2.50% Fair Value $45.64 - $59.05 $51.32 Data courtesy of finbox.io AT&T (T)Source: Jonathan Weiss / Shutterstock.com AT&T (NYSE:T) is one of the best plays in the telecom sector right now, even if the company recently cancelled an accelerated share buyback to preserve cash on hand.The company said that it decided to pause its $4 billion stock buyback "to maintain flexibility and focus on continued investment in serving our customers, taking care of our employees and enhancing our network, including nationwide 5G. These continued investments will help ensure the Company is well-positioned when the pandemic passes and economies begin to recover."Earlier in March 2020, the company announced that 5G is now live in 22 more markets across the U.S. Since some of the latest smartphones, like Samsung's Galaxy S20, support 5G, customers will begin to utilize the faster low-band spectrum. 5G offers faster speeds over broader distances than the older 4G+ network. And since the demand for better network performance keeps growing, AT&T is in a good position to build its subscriber base at the expense of its competitors.AT&T's Business Solutions division sells wireless products, IoT, and connected devices through FirstNet. It is deploying high-speed nationwide wireless broadband to serve public safety. The reliability and speed of its network will serve to improve AT&T's reputation. Consumer and business customers will switch to AT&T's network if they want a better network and more services. AT&T said its Business Wireline group contributes a lot to its EBITDA. * 7 Small-Cap Stocks That Might Not Survive Analysts currently have an average price target of $42.10 on AT&T stock (per Tipranks). Nokia (NOK)Source: RistoH / Shutterstock.com Nokia (NYSE:NOK) is a leading supplier of 5G networking solutions. In early March, the company announced a collaboration with Intel (NASDAQ:INTC). Nokia will ship variants of its 5G AirScale radio access solutions. This will embed Intel's Atom P5900 processor. So, the 5G radio will "combine compute, connectivity, and acceleration technologies." Because 5G supports billions of devices, the increase in volume and scale will need better technologies to back that demand.Nokia entered a partnership with Marvell (NASDAQ:MRVL) to develop 5G multi-Radio Access Technology (multi-RAT). This will combine Nokia's wireless technology with Marvell's multi-core ARM processor platforms. Nokia's ReefShark will benefit from lower power usage and smaller chip size.Nokia is progressing well in the 5G space. In Feb. 2020, the company completed a 5G core standalone network trial with KDDI, a leading telecoms company in Japan. So Nokia, through its 5G AirGile cloud-native core product, has the know-how to analyze 5G networks in a stand-alone service format.Assuming the following metrics in an earnings power value model, Nokia stock is worth $5.10:Metrics Range Conclusion Adjusted Earnings 952 M - 4.03 B 1.988 B Discount Rate 9.0% - 7.0% 8.00% Fair Value $2.39 - $11.31 $5.10 Data courtesy of finbox.io Ericsson (ERIC)Source: Shutterstock Just as Nokia reported a successful trial with KDDI, Ericsson (NASDAQ:ERIC) achieved cloud-native CI/CD (Continuous Integration/Continuous Delivery) pipeline delivery for KDDI's standalone 5G Core network.This will support the automatic deployment of new software and functions without disrupting the 5G core network. Ericsson has effectively automated the deployment process by taking out the need for staff involvement.The company further announced the production of its first 5G base station. The factory is located in Lewisville, Texas. And once it is operational later this year, the factory will supply all radio access components for a solution that 5G networks will use.In its fourth quarter, Ericsson management said it had nearly 80 commercial 5G agreements in place, with 24 5G networks already live. Customers are migrating to 5G and will need both operational support systems and cloud infrastructure as a by-product. So overall, gross margins held a steady 38.1%. The company's portfolio will benefit from the good momentum regardless of the current market conditions.Looking ahead, the shift from 4G to 5G is driving capital expenditure growth in the industry. Alongside that upgrade is data growth from users. Plus, the sudden shift in users needing to work remotely due to the COVID-19 lockdown also accelerated the upgrade timetable. * 7 Small-Cap Stocks That Might Not Survive ERIC stock has a fair value of $7.94, according to a quantitative research report by Stock Rover. NXP Semiconductor (NXPI)Source: Lukassek / Shutterstock.com NXP Semiconductor (NASDAQ:NXPI) beat consensus estimates yet again in the fourth quarter. The company benefited from strong demand in mobile, automotive, and industrial IoT markets. Revenue topped $2.3 billion, $30 million above company guidance.In the industrial IoT sector, NXP posted revenue falling 12% year-on-year due to the U.S./China trade worries. But looking ahead, revenue from industrial IoT will rise by 20%. Mobile will increase in the low double-digit percentage range.To bolster its Wi-Fi product, NXP acquired Marvell's (NASDAQ:MRVL) connectivity business. This will strengthen its automotive infotainment connectivity solution. Its industrial and IoT applications will also benefit from the Marvell acquisition. In the 2021-22 period, NXP expects improved traction for its ultra-band solution. So, with more IoT application use cases, expect a higher revenue range forecast.Management expects modest growth in the 5G space. On the conference call, CEO Rick Clemmer said that the company hasn't "seen a resumption of the 5G growth yet. And it looks like it'll still be a couple of quarters out before we'll see strong growth in 5G deployment. We clearly see that it's coming. Just don't see it in the near term." STMicroelectronics (STM)Source: Michael Vi / Shutterstock.com STMicroelectronics (NYSE:STM) has lost half its value on the stock market. The company said it will cut production by up to 50% due to the coronavirus outbreak in France. Yet if the global slowdown proves short-lived, STMicro should meet its full-year 2020 outlook. It commented on its conference call that product demand will grow because of trends in "smart mobility, power and energy applications, and IoT and 5G."STMicro set a $1.5 billion capital expenditure plan to support growth in those markets. Its eventual goal is $12 billion in revenue. If history is any indicator, this firm will exceed those targets. Last year, for example, demand in personal electronics such as smartphones and wearables, climbed in the latter half of 2019.This year, 5G infrastructure build-outs are growing. So, ST is in a good position to meet the rising demand in IoT and 5G. And as more smartphone makers refresh the models to the 5G standard, the average selling price increases. ST will also offer such features as wireless charging and Micro Electro Mechanical Systems sensors. * 7 Small-Cap Stocks That Might Not Survive On Wall Street, the average price target on STM stock is $28.98 (per Tipranks). Qualcomm (QCOM)Source: Xixi Fu / Shutterstock.com Qualcomm (NASDAQ:QCOM) is a Wall Street favorite, with a $94.67 price target. The smartphone chip processor and modem supplier said that demand in China already returned to normal levels. The company is at the forefront of the 4G to 5G transition. In anticipation of the explosive growth ahead, the company is maintaining a healthy level of operating expenditure levels. This will help it keep or improve its structure.In the long-term, investments in the business today will pay off tomorrow. With its radio frequency design wins and high-performance Snapdragon chip, investors should expect Qualcomm's operating margins to increase. The business is so healthy not just in China but overall. The company said on its Q! earnings call that "in terms of inventory on 5G, we're really at the front end. And we have increasing demand from our OEM base. And really, the challenge for us is how do we keep up with increasing demand, because it's an incredible opportunity for us to grow."Investors may forecast revenue growing by around 3% annually in a 10-year discounted cash flow revenue exit model. Also, assume the following metrics:Metrics Range Conclusion Discount Rate 10.0% - 9.0% 9.50% Terminal Revenue Multiple 3.4x - 4.4x 3.9x Fair Value $74.34 - 92.15 $82.92 Data courtesy of finbox.ioDisclosure: the author owns Nokia stock. More From InvestorPlace * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * This Stock Picker's Latest Video Just Went Viral * The 1 Stock All Retirees Must Own The post 7 Tech Stocks to Buy For an Interconnected World appeared first on InvestorPlace.
While BlackBerry (BB) beats on fourth-quarter fiscal 2020 earnings on year-over-year revenue growth, Nokia (NOK) launches an innovative platform to aid users with reliable network connectivity.
Nokia (NOK) launches a first-of-its-kind AI-backed service offering that enables CSPs to support future network evolution, and optimize enterprise and cloud services on a global scale.
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...
Nokia (NOK) acquires Elenion to boost economies of optical connectivity solutions and accelerate the scale of its advanced networking applications in the global arena.
(Bloomberg) -- With so many workers videoconferencing from home -- while their children stream videos and play Fortnite -- the internet is creaking at the seams, according to Nokia Oyj.The junctions between different internet networks are close to being overwhelmed, the Finnish telecom equipment company said in a weekly report seen by Bloomberg News.“Globally, service providers are starting to see the increased strain and are approaching the capacity on some peering links and edge routers,” Nokia said.But don’t panic yet: Operators can sidestep major jams and outages by rapidly upgrading equipment and adding components at these bottlenecks, according to the company, which likened it to a supermarket hiring more cashiers for busy times.“They can add more capacity, which is easily done,” Nokia said. “Networks are handling traffic well -- so far.”Nokia’s analytics service, dubbed Deepfield, also found a 300% surge in remote-conferencing programs like Zoom and Skype in the U.S. compared with the previous week. Video games, meanwhile, soared 400%.Netflix Inc.’s decision last week to cap its video quality has eased a lot of pressure. The Los Gatos, California-based company accounts for a big chunk of downstream internet traffic in the U.S. and other countries. But its total data flow on March 21 was a third lower than the week before, even while the number of individual streams had increased 6%.Telecom giant Vodafone Group Plc bulked up its U.K. networks’ capacity earlier this month to “minimize congestion at particularly busy aggregation points,” said the head of its U.K. business, Nick Jeffery. Rival carrier BT Group Plc describes its backbone network, which underpins most of Britain’s home connections, as “petabit class,” and its engineers say it can also add capacity quickly.(Updates with additional context from BT and Vodafone at end)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Nokia (NOK) collaborates with Sprint to achieve a record-breaking deployment of 5G network technology through a software upgrade over Nokia's much-acclaimed AirScale solution.
Nokia (NOK) boosts its much-acclaimed managed services platform, Worldwide IoT Network Grid, with the addition of advanced MEC and 5G capabilities for seamless network connectivity.
Nokia said in December it planned to appoint its former networks chief, Baldauf, 64, as chairman, to lead Nokia's fight against rivals in 5G Huawei and Ericsson. Baldauf's appointment requires the approval of shareholders, but this week Finland started to close its borders and banned larger public gatherings as it tries to slow the spread of coronavirus. Nokia said it would convene the annual general meeting as soon as it is practical to do so and called for measures to allow fully virtual general meetings.
We hate to say this but, we told you so. On February 27th we published an article with the title Recession is Imminent: We Need A Travel Ban NOW and predicted a US recession when the S&P 500 Index was trading at the 3150 level. We also told you to short the market and buy […]
While AT&T (T) provides an update on the probable impact of the coronavirus outbreak on its performance, Nokia (NOK) teams up with Marvell Technology to develop a customized 5G radio access SoC.
With Nokia (NYSE:NOK) stock hammered by recent sell-offs, is now the time to buy? The telecom equipment also-ran has its work cut out for them. But while Huawei and Ericsson (NASDAQ:ERIC) may be ahead in 5G contracts, catalysts remain in motion.Source: RistoH / Shutterstock.com For one, the U.S. government has an interest in propping up Nokia. Preventing China-backed Huawei from dominating 5G remains a top concern. More far-fetched ideas, such as a U.S. takeover of Nokia, seem rather absurd. But having America in the company's corner remains a positive factor.But that's not all! With low expectations priced in, even partial success in 5G could help move the needle. A change in leadership could also improve odds of a turnaround. With shares trading at a discount to peers, upside potential may outweigh downside risks. Let's dive in, and see why Nokia stock could be a buy at today's prices.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Darkest Before The Dawn For NOK StockIn a "winner-take-all" world, it's tough to support the underdogs. Nokia is not the strongest name in its industry. But while this "fallen angel" likely won't reach past levels of success, investors could still see upside if the company exceeds low expectations.As InvestorPlace's Faisal Humayun discussed March 4, Nokia faces many challenges in 2020. Competition for 5G contracts hurts margins. So does increased 5G-related investments. Supply-chain headwinds from the coronavirus add even more pressure. Yet, the expectations of reduced operating margins are already priced into shares.It's always darkest before the dawn. Nokia's 5G investments could pay off. Even if they don't dominate the space, they could still build a decent book of business. And with a new CEO taking the helm, the company's prospects could be brighter. Current CEO Rajeev Suri's announced exit may be cause for concern. But given the company's poor performance, they have little to lose.Incoming CEO Pekka Lundmark has yet to discuss strategic changes. But a changing of the guard could move the needle. As a recent MarketWatch article discussed, the ingredients for success could already be in place. Nokia is behind in 5G contracts, but not by much. The company has 68 deals worldwide, compared to 81 for Ericsson and 91 for Huawei.The pressure is on Lundmark to execute the company's 5G strategy. But, with shares trading at "worst-case scenario" levels, even a half-successful effort could mean upside for Nokia stock. Despite Troubles, Undervalued Relative To PeersWhile prospects remain uncertain, you can't deny NOK stock is cheap. Shares trade for a forward price-to-earnings (P/E) ratio of 12.2. That's on par with Cisco's (NASDAQ:CSCO) forward multiple of 12.3. But compare that to Ericsson, which trades for 14.5 times forward earnings.On an enterprise value/EBITDA (EV/EBITDA) basis, Nokia looks even cheaper. With an EV/EBITDA ratio of 6.2, the company's valuation is well below Cisco's EV/EBITDA ratio of 9.9. And far below Ericsson's EBITDA multiple of 14.Granted, Ericsson's stronger business justifies a higher multiple. But, if Nokia beats expectations with its 5G strategy, expect multiples to move higher. Maybe not back to above $5 per share. But a move back to the $4 t0 $4.50 per share price level is within reach. In other words, 20%-35% upside from the stock's closing price of $3.32 on March 10.The company's low valuation could also make it a takeover target. But don't use this is your rationale for buying NOK stock. A merger with Ericsson seems like a logical move. But it likely wouldn't get past antitrust concerns. The low-margin nature of Nokia's business also means names like Cisco or Apple (NASDAQ:AAPL) aren't waiting in the wings, either.A sale of the company outright is a long-shot. Yet, asset sales remain an option. Besides freeing up capital, non-core asset sales would help further make Nokia a leaner operation. No Slam-Dunk, But Nokia Shares Could Be Worth The RiskBuying NOK stock today is no blue-chip investment. With Huawei and Ericsson outpacing the company in 5G deals, this floundering also-ran is a high-risk opportunity. But, this high-risk comes with high upside potential if things turn out better than expected.Last year's reduced guidance set the tone for disappointment. Yet, if Nokia can beat expectations, shares likely will move higher. While behind rivals, the company has a shot in building a decent book of 5G business.Don't expect shares to shoot up immediately. NOK stock could flounder in the current price range for some time. But, shares could move higher within the next year or two. Consider a buy, but don't go overboard.Thomas Niel, contributor to InvestorPlace, has been writing single-stock analysis for web-based publications since 2016. As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 10 Best Stocks to Buy After The Market's Historic Sell-Off * 9 Gold Stocks to Stave Off Coronavirus-Induced Volatility * 7 Stocks to Buy After International Women's Day The post With Low Expectations Now Priced In, Consider Nokia Stock A Buy appeared first on InvestorPlace.
Nokia (NOK) collaborates with the Irish Aviation Authority to deploy next-gen air traffic control network in North Atlantic airspace for seamless development of mission-critical applications.
These reports, excerpted and edited by Barron’s, were issued recently by investment and research firms. Specifically, Marvell reduced its April-quarter outlook by 5% and provided a wider revenue range to account for the potential coronavirus impact. The primary driver of our estimate revision reflects higher revenue expectations and lower operating expenses.
Nokia (NOK) focuses on developing 5G portfolio, strengthening AirScale and further advancing the capabilities of its ReefShark chipset.