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Nokia (NOK) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Nokia (NOK - Free Report) closed at $4.06, marking a +1% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.7%. At the same time, the Dow added 0.32%, and the tech-heavy Nasdaq gained 1.23%.

Coming into today, shares of the technology company had lost 2.43% in the past month. In that same time, the Computer and Technology sector lost 6.07%, while the S&P 500 gained 0.18%.

Investors will be hoping for strength from NOK as it approaches its next earnings release. On that day, NOK is projected to report earnings of $0.01 per share, which would represent no growth from the year-ago period. Meanwhile, our latest consensus estimate is calling for revenue of $5.87 billion, up 8.26% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.23 per share and revenue of $26.08 billion. These totals would mark changes of -23.33% and +4.11%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for NOK. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. NOK is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, NOK currently has a Forward P/E ratio of 17.33. Its industry sports an average Forward P/E of 20.76, so we one might conclude that NOK is trading at a discount comparatively.

Meanwhile, NOK's PEG ratio is currently 11.63. 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. The Wireless Equipment industry currently had an average PEG ratio of 1.73 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 69, putting it in the top 28% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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