Buy Nokia Stock
Amid drastic changes to its business, Nokia (NOK 1.45%) continues to attract investor attention. Once the leading maker of mobile phones, it has redefined itself as a telecom equipment stock in the 5G era. Moreover, it has recently drawn attention from traders on Reddit as a meme stock, in part due to its low per-share price.
buy nokia stock
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Recently, Nokia stock surged higher after the company revealed it would raise guidance in the upcoming quarter. The announcement sent the stock price upward by 9% on July 13, and it has largely held onto those gains in the days since, closing Tuesday trading at $5.81 per share.
Moreover, the increased attention from traders in Reddit's WallStreetBets subreddit has fueled speculation. Some believe the company's July 29 earnings announcement, when management will reveal its new guidance, could spur the stock much higher. Still, despite the recent stock price increase, Nokia's market cap is down by about 4% over the last five years.
Moreover, Nokia has about 5.6 billion shares outstanding. With so many shares available, gains become more difficult as it takes large purchases to move the stock price. In comparison, AMC Entertainment, which many shareholders slammed recently for its efforts to issue additional shares, has made about 502 million shares available.
This oversupply of shares points to a key difference with other low-priced stocks. Most companies trading in the $5 per share range are either small or mid-cap companies. Nokia has a market cap of about $32 billion -- well into large-cap territory. Consequently, if it returned to its all-time high in the $62 per share range, that would take its market cap to $350 billion.
In the end, Nokia is unlikely to turn small investors into millionaires. Admittedly, an upgrade to its guidance and the speculative interest of meme-stock traders could push its share price higher. However, anecdotal evidence suggests its network equipment is not meeting the standard set by its peers. Moreover, with its revenue flat, investors have less incentive to bid the stock price up.
Unless Nokia can start to match or beat its peers in the telecom equipment market in terms of quality, this stock could struggle to outperform the S&P 500, let alone create millionaires.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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) and an A for Value. The stock holds a P/E ratio of 11.97, while its industry has an average P/E of 14.25. Over the past 52 weeks, NOK's Forward P/E has been as high as 19.46 and as low as 10.89, with a median of 15.24.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. NOK has a P/S ratio of 1.12. This compares to its industry's average P/S of 1.31.
Finally, investors will want to recognize that NOK has a P/CF ratio of 9.06. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 26.42. Over the past year, NOK's P/CF has been as high as 11.18 and as low as -52.19, with a median of -37.07.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Nokia and Viasat are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NOK and VSAT feels like a great value stock at the moment.
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Nokia Oyj (NOK) is down -1.28%% today. NOK has an Overall Score of 31. Find out what this means to you and get the rest of the rankings on NOK!See Full NOK Report (adsbygoogle = window.adsbygoogle []).push();NOK stock closed at $4.68 and is down -$0.06 during pre-market trading. Pre-market tends to be more volatile due to significantly lower volume as most investors only trade between standard trading hours.NOK has a poor overall score of 31 meaning the stock holds a better value than just 31% of stocks at its current price. InvestorsObserver's overall ranking system is a comprehensive evaluation and considers both technical and fundamental factors when evaluating a stock. The overall score is a great starting point for investors that are beginning to evaluate a stock.NOK gets a average Short-Term Technical score of 60 from InvestorsObserver's proprietary ranking system. This means that the stock's trading pattern over the last month have been neutral. Nokia Oyj currently has the 85th highest Short-Term Technical score in the Communication Equipment industry. The Short-Term Technical score evaluates a stock's trading pattern over the past month and is most useful to short-term stock and option traders. (adsbygoogle = window.adsbygoogle []).push();Nokia Oyj's Overall and Short-Term Technical score paint a mixed picture for NOK's recent trading patterns and forecasted price.Click Here To Get The Full Report on Nokia Oyj (NOK)
Nokia stock last closed at $4.84, up 2.11% from the previous day, and has decreased 12.48% in one year. It has underperformed other stocks in the Communication Equipment industry by 0 percentage points. Nokia stock is currently +18.63% from its 52-week low of $4.08, and -13.42% from its 52-week high of $5.59.
Nokia pays a dividend of 1.71%, compared to the Communication Equipment industry's average dividend yield of 2.9%. If you owned $1,000 worth of NOK stock, you would have been paid $17.14 in the past 12 months.
Looking ahead, Nokia believes that it will expand its top and bottom lines at a stronger pace than its competitors through 2023. For that, it must continue to invest in research and development. Additionally, it will likely be reinstating its dividend soon, making NOK stock more attractive to new and existing investors. Nokia forecasts positive free cash flows, supported by robust operating margins.
Nokia wrapped up another strong quarter highlighted by decent revenue and margin growth. Though its supply chain issues may impact its fourth-quarter performance, it should perform exceedingly well in the long term. Its investments in the 5G realm have been paying off in a big way, and it will continue to garner more market share from its peers. Therefore, NOK stock is an excellent long-term investment in the 5G space.
Following Simo Vuorilehto's appointment as CEO, a major restructuring was planned. With 11 groups within the company, Vuorilehto divested industrial units he deemed as un-strategic. Nokian Tyres (Nokian Renkaat), a tyre producer originally formed as a division of Finnish Rubber Works in 1932, split away from Nokia Corporation in 1988. Two years later, in 1990, Finnish Rubber Works followed suit. In 1991, Nokia sold its computer division, Nokia Data, to UK-based International Computers Limited (ICL), the precursor of Fujitsu Siemens. Investors thought of this as financial trouble and Nokia's stock price sank as a result. Finland was now also experiencing its worst recession in living memory, and the collapse of the Soviet Union, a major customer, made matters worse.
Nokia is a julkinen osakeyhtiö (public joint-stock company) listed on the Nasdaq Nordic/Helsinki and New York stock exchanges.[7] Nokia has played a very large role in the economy of Finland,[190][191] and it is an important employer in the country, working with multiple local partners and subcontractors.[192] Nokia contributed 1.6% to Finland's GDP and accounted for about 16% of the country's exports in 2006.[193]
To be sure, on occasion, there have been signs of progress. Nokia stock has posted fairly regular rallies, and the business has shown signs of driving consistent growth. In 2017, for instance, adjusted earnings per share increased 50% year-over-year. The following year, profits declined, and in 2019 NOK plunged 36.2%.
Nokia denied a media report that it's in acquisition talks with Juniper Networks, a maker of communications networking gear that saw its stock surge 18% when the deal report surfaced earlier in the day. 041b061a72