Prospecting for Stocks: Nokia

Identifying the best investment opportunities in the market takes time. So we've built this "Prospecting" screen -- which is a simplified version of the special checklist that has helped Jeff Fischer and the Motley Fool Pro team -- to accelerate your research and help you identify companies that may make a winning addition to your portfolio.

The following stock screen is based on proprietary community intelligence from the 135,000-plus investors participating in Motley Fool CAPS . We've enhanced the data by factoring in four hand-picked fundamental criteria to measure growth rates, margins, and overall financial health. Although we use these as guidelines, optimal benchmarks vary widely by industry. So get out your shovel and pickax as we start digging for gold.

Is it time to consider Nokia?
Our expedition begins with Nokia. Is now a good time to consider Nokia, or should you look elsewhere? Let's look at Nokia and some others in the communications space.

Nokia vs. Industry Peers

Stock

Nokia (NYSE: NOK  )

 

Brocade Communications Systems (Nasdaq: BRCD  )

 

Aruba Networks (Nasdaq: ARUN  )

 

F5 Networks (Nasdaq: FFIV  )

 

CAPS Community Rating

We prefer 4-star or 5-star stocks.

 

4 Stars

 

YES

 

3 Stars

 

no

 

3 Stars

 

no

 

3 Stars

 

no

CAPS 1000

We like stocks rated "outperform" by 80% of top CAPS members.

 

100% Outperform

 

YES

 

96% Outperform

 

YES

 

91% Outperform

 

YES

 

77% Outperform

 

no

Five-Year Revenue Growth

We like to see five-year revenue growth of at least 10%.

 

11.55%

 

YES

 

30.23%

 

YES

 

137.06%

 

YES

 

31.17%

 

YES

Gross Margin (TTM)

We like to see gross margins of 35% or higher.

 

36.1%

 

 

YES

 

62.1%

 

 

YES

 

70.8%

 

 

YES

 

82.2%

 

 

YES

Total Debt-to-Equity

A total debt-to-equity ratio of 0.50 or less gets a check.

 

.44

 

 

YES

 

.69

 

 

no

 

.00

 

 

YES

 

.00

 

 

YES

Return on Equity

We look for a minimum of 14% return on equity.

 

3.7%

 

 

no

 

NA%

 

 

no

 

NA%

 

 

no

 

11.5%

 

 

no

Total Score

5 of 6

3 of 6

4 of 6

3 of 6

N/M = not meaningful.

Nokia appears to be a better opportunity than these other communications companies.

What do you think about Nokia? If you'd like to make your own call on Nokia, or post a pitch about why you think it will outperform or underperform the market, click here. Of course, you can also just visit to see what other members are saying about it now or what they are saying about more than 5,300 other stocks by joining us on CAPS.

Our Prospecting Stocks screen is a simplified version of the special checklist that has helped Jeff Fischer and the Pro community to find the next opportunities for the Motley Fool Pro portfolio. Learn more about Motley Fool Pro.

Disclosure is important to us here at The Motley Fool. The stocks mentioned in this article received their CAPS ratings from participants in the Motley Fool's CAPS service. No individual person selected the stocks in this article, so there is no author to disclose an interest in them. Since this article was automatically generated by identifying the stocks rated by the CAPS community and by buyers in today's market, it is possible that Motley Fool personnel (and even The Motley Fool itself, through our Million Dollar Portfolio, Motley Fool Pro, and Ready Made Millionaire services), have positions in these stocks. Our lawyers make us put all this at the bottom of this article. You can learn more about the Motley Fool's disclosure policyhere.


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