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Here's Why You Should Add Nokia (NOK) to Your Portfolio
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Shares of Nokia Corporation (NOK - Free Report) have added 20.7% in the past six months compared with 14.7% growth of the industry. At present, the stock carries a Zacks Rank #2 (Buy) and has a VGM Score of B.
The Finland-based telecom equipment maker has a long-term earnings growth expectation of 15.6% compared with the industry’s 15.1%. The Zacks Consensus Estimate for its current-year earnings has been revised 8% upward in the past 30 days.
What Abets the Performance?
Nokia is making good progress in its Mobile Access business, while improving cash generation. The company aims to accelerate its product roadmaps and cost competitiveness through additional 5G investments in 2020. Nokia is witnessing a healthy momentum in its focus areas of software and enterprise, which augurs well for the licensing business.
The company is positioned to benefit from copper and fiber deployments of passive optical networking. It is the only global supplier committed to Open RAN with commercial 5G Cloud-RAN networks. Also, Nokia expanded its IP routing business into the data center market and highlighted that Apple (AAPL - Free Report) was deploying its technology at its data centers.
Nokia is developing its 5G portfolio, strengthening AirScale and advancing the capabilities of its ReefShark chipset. The company is working with multiple partners to support its ReefShark family of chipsets, which are used in many base station elements. The company’s end-to-end portfolio includes products and services for every part of a network. This helps operators enable key 5G capabilities such as network slicing, distributed cloud and industrial IoT.
Nokia seeks to expand its business into targeted, high-growth and high-margin vertical markets to address opportunities beyond its primary markets. It had announced plans to accelerate strategy execution, sharpen customer focus and reduce long-term costs. This, in turn, is likely to position the company as a global leader in the delivery of end-to-end 5G solutions.
Nokia raised its outlook for 2020. The company expects non-IFRS earnings per share of €0.25 (+/- 5 cents), adjusted from an earlier expectation of €0.23. Non-IFRS operating margin is estimated to be 9.5% (+/- 1.5 percentage points) compared with the earlier expectation of 9%. The company continues to expect a long-term (3 to 5 years) non-IFRS operating margin between 12% and 14%.
Plantronics has a trailing four-quarter earnings surprise of 540%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters.
Clearfield has a trailing four-quarter earnings surprise of 45.6%, on average. The company’s earnings topped the consensus estimate in two of the last four quarters.
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Here's Why You Should Add Nokia (NOK) to Your Portfolio
Shares of Nokia Corporation (NOK - Free Report) have added 20.7% in the past six months compared with 14.7% growth of the industry. At present, the stock carries a Zacks Rank #2 (Buy) and has a VGM Score of B.
The Finland-based telecom equipment maker has a long-term earnings growth expectation of 15.6% compared with the industry’s 15.1%. The Zacks Consensus Estimate for its current-year earnings has been revised 8% upward in the past 30 days.
What Abets the Performance?
Nokia is making good progress in its Mobile Access business, while improving cash generation. The company aims to accelerate its product roadmaps and cost competitiveness through additional 5G investments in 2020. Nokia is witnessing a healthy momentum in its focus areas of software and enterprise, which augurs well for the licensing business.
The company is positioned to benefit from copper and fiber deployments of passive optical networking. It is the only global supplier committed to Open RAN with commercial 5G Cloud-RAN networks. Also, Nokia expanded its IP routing business into the data center market and highlighted that Apple (AAPL - Free Report) was deploying its technology at its data centers.
Nokia is developing its 5G portfolio, strengthening AirScale and advancing the capabilities of its ReefShark chipset. The company is working with multiple partners to support its ReefShark family of chipsets, which are used in many base station elements. The company’s end-to-end portfolio includes products and services for every part of a network. This helps operators enable key 5G capabilities such as network slicing, distributed cloud and industrial IoT.
Nokia seeks to expand its business into targeted, high-growth and high-margin vertical markets to address opportunities beyond its primary markets. It had announced plans to accelerate strategy execution, sharpen customer focus and reduce long-term costs. This, in turn, is likely to position the company as a global leader in the delivery of end-to-end 5G solutions.
Nokia raised its outlook for 2020. The company expects non-IFRS earnings per share of €0.25 (+/- 5 cents), adjusted from an earlier expectation of €0.23. Non-IFRS operating margin is estimated to be 9.5% (+/- 1.5 percentage points) compared with the earlier expectation of 9%. The company continues to expect a long-term (3 to 5 years) non-IFRS operating margin between 12% and 14%.
Other Decent Picks
A couple of other top-ranked stocks in the broader industry are Plantronics, Inc. and Clearfield, Inc. (CLFD - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Plantronics has a trailing four-quarter earnings surprise of 540%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters.
Clearfield has a trailing four-quarter earnings surprise of 45.6%, on average. The company’s earnings topped the consensus estimate in two of the last four quarters.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>