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Nokia (NOK) Gains But Lags Market: What You Should Know

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Nokia (NOK - Free Report) closed at $4.16 in the latest trading session, marking a +0.24% move from the prior day. The stock lagged the S&P 500's daily gain of 1.23%. Meanwhile, the Dow gained 0.84%, and the Nasdaq, a tech-heavy index, lost 2.24%.

Heading into today, shares of the technology company had gained 2.47% over the past month, lagging the Computer and Technology sector's gain of 3.32% and the S&P 500's gain of 4.67% in that time.

Wall Street will be looking for positivity from Nokia as it approaches its next earnings report date. This is expected to be July 20, 2023. 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.

Investors might also notice recent changes to analyst estimates for Nokia. Recent revisions tend to reflect the latest 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Nokia is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, Nokia is holding a Forward P/E ratio of 9.47. For comparison, its industry has an average Forward P/E of 14.3, which means Nokia is trading at a discount to the group.

The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 112, which puts it in the top 45% 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.

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