Are Investors Undervaluing Nokia (NOK) Right Now?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Nokia (NOK) is a stock many investors are watching right now. NOK is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 18.44 right now. For comparison, its industry sports an average P/E of 19.79. Over the past year, NOK's Forward P/E has been as high as 29.52 and as low as 10.50, with a median of 16.66.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. NOK has a P/S ratio of 1.15. This compares to its industry's average P/S of 1.7.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Nokia is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NOK feels like a great value stock at the moment.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Nokia Corporation (NOK) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.