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

Nokia (NOK) closed at $5.63 in the latest trading session, marking a -1.92% move from the prior day. This change lagged the S&P 500's daily loss of 1.1%. At the same time, the Dow lost 0.89%, and the tech-heavy Nasdaq gained 0.03%.

Prior to today's trading, shares of the technology company had lost 6.51% over the past month. This has lagged the Computer and Technology sector's loss of 5.94% and the S&P 500's loss of 1.81% in that time.

Nokia will be looking to display strength as it nears its next earnings release, which is expected to be February 3, 2022. On that day, Nokia is projected to report earnings of $0.12 per share, which would represent a year-over-year decline of 29.41%. Our most recent consensus estimate is calling for quarterly revenue of $7.4 billion, down 5.55% from the year-ago period.

Any recent changes to analyst estimates for Nokia should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.41% lower within the past month. Nokia is currently sporting a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Nokia has a Forward P/E ratio of 14.35 right now. For comparison, its industry has an average Forward P/E of 24.85, which means Nokia is trading at a discount to the group.

Meanwhile, NOK's PEG ratio is currently 1.38. 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 was holding an average PEG ratio of 1.92 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 176, putting it in the bottom 31% 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.

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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