Nokia (NOK) Dips More Than Broader Markets: What You Should Know

Nokia (NOK) closed at $5.88 in the latest trading session, marking a -1.18% move from the prior day. This change lagged the S&P 500's 0.11% loss on the day.

Prior to today's trading, shares of the technology company had gained 6.63% over the past month. This has outpaced the Computer and Technology sector's gain of 1.9% and the S&P 500's gain of 4.61% 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 $0.08, up 33.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.06 billion, down 2.14% from the prior-year quarter.

NOK's full-year Zacks Consensus Estimates are calling for earnings of $0.38 per share and revenue of $26.18 billion. These results would represent year-over-year changes of +26.67% and +4.53%, respectively.

Investors might also notice recent changes to analyst estimates for NOK. These revisions help to show the ever-changing nature of 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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. NOK is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, NOK is holding a Forward P/E ratio of 15.74. Its industry sports an average Forward P/E of 22.4, so we one might conclude that NOK is trading at a discount comparatively.

Investors should also note that NOK has a PEG ratio of 10.56 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Wireless Equipment was holding an average PEG ratio of 4.06 at yesterday's closing price.

The Wireless Equipment industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 159, putting it in the bottom 38% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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