Nokia (NOK) Outpaces Stock Market Gains: What You Should Know
Nokia (NOK) closed at $5.45 in the latest trading session, marking a +0.37% move from the prior day. This move outpaced the S&P 500's daily gain of 0.18%.
Heading into today, shares of the technology company had gained 10.82% over the past month, outpacing the Computer and Technology sector's gain of 6.46% and the S&P 500's gain of 2.43% in that time.
Investors will be hoping for strength from NOK as it approaches its next earnings release. The company is expected to report EPS of $0.06, down 14.29% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.32 billion, up 12.81% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.29 per share and revenue of $25.84 billion, which would represent changes of -3.33% and +3.16%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for NOK. These recent revisions tend to reflect the evolving nature of short-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.
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. NOK currently has a Zacks Rank of #2 (Buy).
In terms of valuation, NOK is currently trading at a Forward P/E ratio of 18.47. For comparison, its industry has an average Forward P/E of 20.31, which means NOK is trading at a discount to the group.
Meanwhile, NOK's PEG ratio is currently 12.4. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Wireless Equipment industry currently had an average PEG ratio of 2.29 as of yesterday's close.
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 171, which puts it in the bottom 33% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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