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Nokia (NOK) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research
Ventas (VTR) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

Nokia (NOK) closed the most recent trading day at $5.68, moving +0.71% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.05%. Meanwhile, the Dow gained 0.26%, and the Nasdaq, a tech-heavy index, added 0.3%.

Coming into today, shares of the technology company had lost 10.9% in the past month. In that same time, the Computer and Technology sector gained 3.73%, while the S&P 500 gained 3.08%.

Investors will be hoping for strength from NOK as it approaches its next earnings release, which is expected to be April 25, 2019. 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 $5.77 billion, down 4.61% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.31 per share and revenue of $26.27 billion, which would represent changes of +14.81% and -1.16%, respectively, from the prior year.

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 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. NOK is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, NOK is holding a Forward P/E ratio of 18. For comparison, its industry has an average Forward P/E of 24.58, which means NOK is trading at a discount to the group.

The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 61, which puts it in the top 24% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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