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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Nokia (NOK - Free Report) is a stock many investors are watching right now. NOK is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 12.46, while its industry has an average P/E of 21.66. Over the past year, NOK's Forward P/E has been as high as 12.68 and as low as 7.03, with a median of 9.86.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. NOK has a P/S ratio of 1.15. This compares to its industry's average P/S of 1.18.
Value investors will likely look at more than just these metrics, but the above data helps show that Nokia is likely undervalued currently. And when considering the strength of its earnings outlook, NOK sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Nokia (NOK) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Nokia (NOK - Free Report) is a stock many investors are watching right now. NOK is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 12.46, while its industry has an average P/E of 21.66. Over the past year, NOK's Forward P/E has been as high as 12.68 and as low as 7.03, with a median of 9.86.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. NOK has a P/S ratio of 1.15. This compares to its industry's average P/S of 1.18.
Value investors will likely look at more than just these metrics, but the above data helps show that Nokia is likely undervalued currently. And when considering the strength of its earnings outlook, NOK sticks out at as one of the market's strongest value stocks.