Nokia (NOK) closed at $4.81 in the latest trading session, marking a -0.82% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.3%. Meanwhile, the Dow lost 0.69%, and the Nasdaq, a tech-heavy index, lost 0.41%.
Heading into today, shares of the technology company had lost 14.16% over the past month, lagging the Computer and Technology sector's loss of 8.81% and the S&P 500's loss of 5.33% in that time.
Investors will be hoping for strength from Nokia as it approaches its next earnings release. On that day, Nokia is projected to report earnings of $0.07 per share, which would represent a year-over-year decline of 12.5%. Our most recent consensus estimate is calling for quarterly revenue of $6 billion, down 1.95% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.41 per share and revenue of $26.12 billion, which would represent changes of -6.82% and -0.4%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Nokia. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 has moved 2.64% higher. Nokia is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Nokia is holding a Forward P/E ratio of 11.72. Its industry sports an average Forward P/E of 22.54, so we one might conclude that Nokia is trading at a discount comparatively.
Also, we should mention that NOK has a PEG ratio of 1.12. 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. The Wireless Equipment industry currently had an average PEG ratio of 2.08 as of yesterday's close.
The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 99, putting it in the top 39% 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.
To follow NOK in the coming trading sessions, be sure to utilize Zacks.com.
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