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Nokia (NOK) Gains As Market Dips: What You Should Know

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In the latest trading session, Nokia (NOK - Free Report) closed at $5.62, marking a +0.18% move from the previous day. This move outpaced the S&P 500's daily loss of 0.16%.

Coming into today, shares of the technology company had lost 5.71% in the past month. In that same time, the Computer and Technology sector gained 2.75%, while the S&P 500 gained 0.46%.

NOK will be looking to display strength as it nears its next earnings release. In that report, analysts expect NOK to post earnings of $0.08 per share. This would mark year-over-year growth of 33.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.06 billion, down 2.14% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.38 per share and revenue of $26.18 billion. These totals would mark changes of +26.67% and +4.53%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for NOK. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. NOK is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, NOK is holding a Forward P/E ratio of 14.84. Its industry sports an average Forward P/E of 21.96, so we one might conclude that NOK is trading at a discount comparatively.

We can also see that NOK currently has a PEG ratio of 9.96. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Wireless Equipment industry currently had an average PEG ratio of 3.25 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 58, putting it in the top 23% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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