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Nokia (NOK) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
·3 min read

In the latest trading session, Nokia (NOK) closed at $5.16, marking a -1.15% move from the previous day. This change lagged the S&P 500's daily loss of 0.04%.

Prior to today's trading, shares of the technology company had gained 5.67% over the past month. This has lagged the Computer and Technology sector's gain of 6.01% and outpaced the S&P 500's gain of 1.35% 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 $0.06 per share. This would mark a year-over-year decline of 14.29%. Our most recent consensus estimate is calling for quarterly revenue of $6.32 billion, up 12.81% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.29 per share and revenue of $25.84 billion, which would represent changes of -3.33% and +3.16%, respectively, from the prior year.

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Investors might also notice recent changes to analyst estimates for NOK. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. NOK is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, NOK is holding a Forward P/E ratio of 17.75. Its industry sports an average Forward P/E of 20.79, so we one might conclude that NOK is trading at a discount comparatively.

Investors should also note that NOK has a PEG ratio of 11.92 right now. 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 2.26 as of yesterday's close.

The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 172, putting it in the bottom 33% 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.

To follow NOK in the coming trading sessions, be sure to utilize Zacks.com.


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