Back to top

Image: Bigstock

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

Read MoreHide Full Article

Nokia (NOK - Free Report) closed at $4.05 in the latest trading session, marking a +1.25% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.7%. Elsewhere, the Dow lost 0.57%, while the tech-heavy Nasdaq lost 1.06%.

Heading into today, shares of the technology company had gained 2.56% over the past month, lagging the Computer and Technology sector's gain of 3.06% and outpacing the S&P 500's gain of 0.58% in that time.

Investors will be hoping for strength from Nokia as it approaches its next earnings release. In that report, analysts expect Nokia to post earnings of $0.09 per share. This would mark 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.

Investors might also notice recent changes to analyst estimates for Nokia. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Nokia currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Nokia is holding a Forward P/E ratio of 9.6. For comparison, its industry has an average Forward P/E of 14.02, 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 91, which puts it in the top 37% 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.

To follow NOK in the coming trading sessions, be sure to utilize

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Nokia Corporation (NOK) - free report >>

Published in