Nokia Corporation (NYSE:NOK) provides mobile and fixed network solutions worldwide. The company operates through four segments: Mobile Networks, Network Infrastructure, Cloud and Network Services, and Nokia Technologies. It focuses on mobile radio including macro radio, small cells, and cloud native radio solutions for communications service providers and enterprises; and provides network planning and optimization, network implementation, and systems integration, as well as company-wide managed services. The company also offers fixed networking solutions, such as copper and fiber access products, solutions, and services. In addition, it provides network infrastructure and professional services for mobile networks; and managed services for the fixed, mobile, Internet protocol (IP), and optical domains. Further, the company offers network planning, implementation, operation, and maintenance services. Additionally, it provides IP/optical networking solutions, including IP routing and optical transport systems, software, and services; software solutions, such as customer experience management, network operations and management, communications and collaborations, and policy and charging, as well as cloud, IoT, security, and analytics platforms; and submarine networks and radiofrequency systems. Nokia Corporation was founded in 1865 and is headquartered in Espoo, Finland.
The company has rapidly accelerated as its products and execution have greatly improved under its new CEO. Moreover, the company continues to have multiple, strong, positive catalysts, while the valuation of NOK stock remains reasonable. Nokia is very unlikely to lose a great deal of market share anytime soon, making the stock a very good tech name for more conservative investors.
The company’s gross margin reached 37% in Q4 of 2020, up from 29% at the end of 2019.Nokia’s 5G chips are catching up with those of its rivals, and the disparity should disappear next year, a Nokia executive told Light Reading.
Both Nokia’s technology upgrades and Huawei’s difficulties have contributed to the recent improvements of Nokia’s financial results and to the Street’s more upbeat view of NOK stock.
In Q1, Nokia’s operating income came in at 431 EUR, much better than its operating loss of 76 million EUR during the same period a year earlier. In Q1, Nokia’s companywide net sales climbed 9% YOY, and its operating margin rose to 10.9%. In North America, Greater China, and India, its net sales increased by at least 10% YOY, and it added a total of 63 new enterprise customers YOY.
Recently, Wall Street analysts had improved view of Nokia, a Morgan Stanley analyst upgraded his rating on the company’s shares to “overweight” from “equal weight.” On July 30, investment advisory Cowen upgraded Nokia Corporation (NYSE: NOK) stock to Outperform from Market Perform. The price target on the shares was also raised to $8 from $5. Paul Silverstein, an analyst at the firm, issued the ratings update. In addition, at the end of the first quarter of 2021, more hedge funds held stakes in Nokia stock shares.
The company’s shares have returned 26% to investors over the past twelve months and are well-positioned to deliver similar or slightly better gains over the next year or so. Therefore, this is a turnaround stock and conservative investors should buy the shares.