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Nokia (NOK) Stock Slides as Market Rises: Facts to Know Before You Trade

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The latest trading session saw Nokia (NOK - Free Report) ending at $3.37, denoting a -0.3% adjustment from its last day's close. This move lagged the S&P 500's daily gain of 0.04%. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, lost 0.03%.

Shares of the technology company witnessed a loss of 5.06% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 4.9% and the S&P 500's gain of 5.28%.

The upcoming earnings release of Nokia will be of great interest to investors. The company's earnings report is expected on January 25, 2024. It is anticipated that the company will report an EPS of $0.15, marking a 6.25% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $6.85 billion, indicating a 9.89% decline compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.36 per share and revenue of $24.56 billion, which would represent changes of -21.74% and -6.09%, respectively, from the prior year.

Any recent changes to analyst estimates for Nokia should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 6.25% decrease. Nokia presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Nokia is currently trading at a Forward P/E ratio of 9.39. This signifies a discount in comparison to the average Forward P/E of 14.41 for its industry.

The Wireless Equipment industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 150, placing it within the bottom 41% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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