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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 $5.93, marking a +0.68% move from the previous day. This change outpaced the S&P 500's 0.08% gain on the day. At the same time, the Dow lost 0.56%, and the tech-heavy Nasdaq lost 0.42%.

Prior to today's trading, shares of the technology company had lost 2.81% over the past month. This has was narrower than the Computer and Technology sector's loss of 5.11% and lagged the S&P 500's gain of 0.22% in that time.

Nokia will be looking to display strength as it nears its next earnings release, which is expected to be February 3, 2022. The company is expected to report EPS of $0.12, down 29.41% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.4 billion, down 5.55% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Nokia. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 2.91% lower within the past month. Nokia currently has a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Nokia has a Forward P/E ratio of 14.73 right now. Its industry sports an average Forward P/E of 25.53, so we one might conclude that Nokia is trading at a discount comparatively.

We can also see that NOK currently has a PEG ratio of 1.41. 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 was holding an average PEG ratio of 1.97 at yesterday's closing price.

The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 191, which puts it in the bottom 26% 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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