Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, Nokia (NOK - Free Report) closed at $4.02, marking a +0.25% move from the previous day. This move lagged the S&P 500's daily gain of 0.84%. Meanwhile, the Dow gained 0.96%, and the Nasdaq, a tech-heavy index, added 0.81%.

Prior to today's trading, shares of the technology company had gained 6.65% over the past month. This has outpaced the Computer and Technology sector's gain of 2.69% and the S&P 500's gain of 0.19% in that time.

Wall Street will be looking for positivity from Nokia as it approaches its next earnings report date. In that report, analysts expect Nokia to post earnings of $0.09 per share. This would mark a year-over-year decline of 10%. Meanwhile, our latest consensus estimate is calling for revenue of $6.36 billion, up 1.05% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.42 per share and revenue of $26.4 billion, which would represent changes of -8.7% and +0.92%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Nokia. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. 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 9.62. Its industry sports an average Forward P/E of 13.56, 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 97, which puts it in the top 39% 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.

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