Trade-Ideas LLC identified

Nokia Oyj

(

NOK

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Nokia Oyj as such a stock due to the following factors:

  • NOK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $71.9 million.
  • NOK has traded 2.7 million shares today.
  • NOK is trading at 3.05 times the normal volume for the stock at this time of day.
  • NOK is trading at a new high 6.00% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on NOK:

Nokia Corporation, together with its subsidiaries, provides network infrastructure and related services worldwide. It operates in five business groups: Mobile Networks, Fixed Networks, IP/Optical Networks, Applications & Analytics, and Nokia Technologies. The stock currently has a dividend yield of 4%. NOK has a PE ratio of 7. Currently there are 6 analysts that rate Nokia Oyj a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Nokia Oyj has been 14.1 million shares per day over the past 30 days. Nokia Oyj has a market cap of $29.8 billion and is part of the technology sector and telecommunications industry. Shares are down 27.6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Nokia Oyj as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

Highlights from the ratings report include:

  • NOK's very impressive revenue growth greatly exceeded the industry average of 0.3%. Since the same quarter one year prior, revenues leaped by 102.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • NOK's debt-to-equity ratio is very low at 0.20 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, NOK has a quick ratio of 1.59, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 46.58% is the gross profit margin for NOKIA CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -9.15% is in-line with the industry average.
  • NOKIA CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, NOKIA CORP reported lower earnings of $0.33 versus $0.82 in the prior year. For the next year, the market is expecting a contraction of 36.4% in earnings ($0.21 versus $0.33).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Communications Equipment industry. The net income has significantly decreased by 407.3% when compared to the same quarter one year ago, falling from $190.12 million to -$584.31 million.

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