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Nokia (NOK) Dips More Than Broader Markets: What You Should Know

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Nokia (NOK - Free Report) closed at $6.29 in the latest trading session, marking a -0.94% move from the prior day. This change lagged the S&P 500's 0.29% loss on the day. At the same time, the Dow lost 0.55%, and the tech-heavy Nasdaq gained 0.07%.

Prior to today's trading, shares of the technology company had gained 2.92% over the past month. This has lagged the Computer and Technology sector's gain of 4.76% and outpaced the S&P 500's gain of 2.14% in that time.

Wall Street will be looking for positivity from NOK as it approaches its next earnings report date. The company is expected to report EPS of $0.03, up 50% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.13 billion, up 1.31% from the year-ago period.

NOK's full-year Zacks Consensus Estimates are calling for earnings of $0.33 per share and revenue of $26.59 billion. These results would represent year-over-year changes of +22.22% and +0.06%, respectively.

Investors might also notice recent changes to analyst estimates for NOK. These revisions help to show the ever-changing nature of 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 remained stagnant. NOK currently has a Zacks Rank of #4 (Sell).

Digging into valuation, NOK currently has a Forward P/E ratio of 19.44. Its industry sports an average Forward P/E of 22.98, so we one might conclude that NOK is trading at a discount comparatively.

We can also see that NOK currently has a PEG ratio of 1.93. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Wireless Equipment stocks are, on average, holding a PEG ratio of 2.19 based on yesterday's closing prices.

The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 89, putting it in the top 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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