Nokia (NOK) closed at $4.07 in the latest trading session, marking a -1.45% move from the prior day. This change lagged the S&P 500's daily loss of 0.02%.
Heading into today, shares of the technology company had gained 0.73% over the past month, lagging the Computer and Technology sector's gain of 7.32% and the S&P 500's gain of 6.61% in that time.
Investors will be hoping for strength from NOK as it approaches its next earnings release. In that report, analysts expect NOK to post earnings of $0.01 per share. This would mark no growth from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.87 billion, up 8.26% from the year-ago period.
NOK's full-year Zacks Consensus Estimates are calling for earnings of $0.23 per share and revenue of $26.22 billion. These results would represent year-over-year changes of -23.33% and +4.67%, respectively.
It is also important to note the recent changes to analyst estimates for NOK. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. NOK is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that NOK has a Forward P/E ratio of 17.8 right now. For comparison, its industry has an average Forward P/E of 22.14, which means NOK is trading at a discount to the group.
Meanwhile, NOK's PEG ratio is currently 11.95. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Wireless Equipment stocks are, on average, holding a PEG ratio of 1.85 based on yesterday's closing prices.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 113, which puts it in the top 45% 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.
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