What Makes Nokia (NOK) a New Buy Stock

Core Viewpoint - Nokia (NOK) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, which in turn affects the stock price [4]. Recent Performance and Outlook - For the fiscal year ending December 2025, Nokia is expected to earn $0.32 per share, with a 3.7% increase in the Zacks Consensus Estimate over the past three months, reflecting a positive trend in earnings estimates [8]. - The upgrade to Zacks Rank 2 places Nokia in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - The system maintains a balanced distribution of ratings, ensuring that only the top 5% of stocks receive a "Strong Buy" rating, while the next 15% receive a "Buy" rating, indicating superior earnings estimate revisions [9].