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

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Nokia (NOK - Free Report) closed at $3.80 in the latest trading session, marking a +0.8% move from the prior day. This change outpaced the S&P 500's 0.67% gain on the day. Elsewhere, the Dow gained 0.73%, while the tech-heavy Nasdaq added 0.94%.

Coming into today, shares of the technology company had lost 3.33% in the past month. In that same time, the Computer and Technology sector lost 3.27%, while the S&P 500 lost 3.8%.

Investors will be hoping for strength from Nokia as it approaches its next earnings release. On that day, Nokia is projected to report earnings of $0.09 per share, which would represent a year-over-year decline of 10%. Our most recent consensus estimate is calling for quarterly revenue of $6.36 billion, up 1.16% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.42 per share and revenue of $26.41 billion, which would represent changes of -8.7% and +0.98%, respectively, from the prior year.

Any recent changes to analyst estimates for Nokia should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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 has moved 0.79% lower. Nokia is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Nokia's current valuation metrics, including its Forward P/E ratio of 9.05. Its industry sports an average Forward P/E of 13.06, 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 82, which puts it in the top 33% 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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