Yahoo Finance Nokia (NOK) Outpaces Stock Market Gains: What You Should Know
Nokia (NOK) closed at $4.02 in the latest trading session, marking a +1.52% move from the prior day. This move outpaced the S&P 500's daily gain of 1.31%. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, lost 4.19%.
Coming into today, shares of the technology company had lost 5.26% in the past month. In that same time, the Computer and Technology sector gained 12.07%, while the S&P 500 gained 2.12%.
Nokia will be looking to display strength as it nears its next earnings release. On that day, Nokia is projected to report earnings of $0.08 per share, which would represent a year-over-year decline of 27.27%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.43 billion, up 2.74% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.44 per share and revenue of $27.86 billion. These totals would mark changes of -4.35% and +6.5%, respectively, from last year.
It is also important to note the 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. 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, 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 has moved 0.69% higher. Nokia is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Nokia is currently trading at a Forward P/E ratio of 9.04. Its industry sports an average Forward P/E of 13.69, so we one might conclude that Nokia is trading at a discount comparatively.
Also, we should mention that NOK has a PEG ratio of 5.11. 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 2.27 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 121, which puts it in the top 49% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Nokia Corporation (NOK) : Free Stock Analysis Report
