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

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Nokia (NOK - Free Report) closed at $4.66 in the latest trading session, marking a +1.08% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.06%. At the same time, the Dow added 1.05%, and the tech-heavy Nasdaq gained 0.55%.

Heading into today, shares of the technology company had lost 9.43% over the past month, lagging the Computer and Technology sector's loss of 8.63% and the S&P 500's loss of 8.3% in that time.

Nokia will be looking to display strength as it nears its next earnings release. In that report, analysts expect Nokia to post earnings of $0.07 per share. This would mark a year-over-year decline of 36.36%. Our most recent consensus estimate is calling for quarterly revenue of $6.07 billion, down 5.12% from the year-ago period.

NOK's full-year Zacks Consensus Estimates are calling for earnings of $0.42 per share and revenue of $25.27 billion. These results would represent year-over-year changes of -4.55% and -3.62%, respectively.

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. 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, 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 remained stagnant. Nokia is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Nokia currently has a Forward P/E ratio of 10.89. Its industry sports an average Forward P/E of 17.76, so we one might conclude that Nokia is trading at a discount comparatively.

The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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