NEW YORK (TheStreet) -- Nokia (NOK) - Get Report stock is advancing 1.56% to $5.20 in pre-market trading on Wednesday, as the Finnish telecommunications company will return to smartphones through a licensing deal with Helsinki-based HMD Global Oy.

HMD, which is run by former Nokia managers, plans to invest more than $500 million. The licensing agreement gives HMD the exclusive use of the Nokia brand on mobile phones and tablets globally for the next decade, according to a company statement by Nokia.

Nokia won't have a financial stake in the agreement, but will collect fees from brand licensing and international property. 

The venture grants Nokia a second chance at competing with the likes of Apple's (AAPL) iPhone and Alphabet's (GOOGL) Google Android devices. 

"It's going to take more than a well-known brand name in this competitive market," Annette Zimmermann, an smartphone analyst at research firm Gartner, told Bloomberg. "To shake up the market and offer something that excites the fickle market will be difficult."

Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.

Nokia's strengths such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins are countered by weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

You can view the full analysis from the report here: NOK

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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