Nokia Oyj (NOK) Strong On High Relative Volume Today

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

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 $277.9 million.
  • NOK has traded 9.0 million shares today.
  • NOK is trading at 4.83 times the normal volume for the stock at this time of day.
  • NOK is trading at a new high 3.13% 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 in Finland, the United States, Japan, China, India, the Russian Federation, Germany, Taiwan, Indonesia, Italy, and internationally. The stock currently has a dividend yield of 3.3%. NOK has a PE ratio of 92.6. Currently there are 4 analysts that rate Nokia Oyj a buy, 1 analyst rates it a sell, and 8 rate it a hold.

The average volume for Nokia Oyj has been 28.2 million shares per day over the past 30 days. Nokia Oyj has a market cap of $23.8 billion and is part of the technology sector and telecommunications industry. Shares are down 17.6% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Nokia Oyj as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, notable return on equity, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Communications Equipment industry. The net income increased by 157.7% when compared to the same quarter one year prior, rising from -$329.27 million to $190.12 million.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Communications Equipment industry and the overall market, NOKIA CORP's return on equity exceeds that of both the industry average and the S&P 500.
  • Despite currently having a low debt-to-equity ratio of 0.31, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that NOK's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.51 is high and demonstrates strong liquidity.
  • NOKIA CORP has improved earnings per share by 25.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, NOKIA CORP increased its bottom line by earning $0.37 versus $0.06 in the prior year. For the next year, the market is expecting a contraction of 8.1% in earnings ($0.34 versus $0.37).

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