Recs

14

4-Star Stocks Poised to Pop: Nokia

Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, mobile handset giant Nokia (NYSE: NOK  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Nokia's business and see what CAPS investors are saying about the stock right now.

Nokia facts

Headquarters (founded)

Espoo, Finland (1865)

Market Cap

$43.86 billion

Industry

Communications Equipment

Trailing-12-Month Revenue

$67.03 billion

Management

CEO Olli-Pekka Kallasvuo (since 2006)

CFO Richard Simonson (since 2004)

Return on Equity (over last three years)

39%

Trailing Dividend Yield

4.5%

Competitors

Motorola (NYSE: MOT  )

Research In Motion (Nasdaq: RIMM  )

Ericsson (Nasdaq: ERIC  )

CAPS members bullish on NOK also bullish on

Apple (Nasdaq: AAPL  )

Google (Nasdaq: GOOG  )

CAPS members bearish on NOK also bearish on

Citigroup (NYSE: C  )

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS.

Over on CAPS, fully 2,367 of the 2,534 members who have rated Nokia -- some 93% -- believe the stock will outperform the S&P 500 going forward. These bulls include my Foolish colleague Tim Hanson (TMFMmbop), who is ranked in the top 10% of our community, and JMJeffrey.

Last week, Tim weighed the stock's pros and con for our community:

Somewhat of a commodity business so I have some reservations here, but strong balance sheet, good brand, dominance in emerging markets, and [free cash flow] generating capabilities render their inability to develop smart phones somewhat moot.

In a pitch from late January, JMJeffrey elaborates:

Yes, the world economic picture has soured but people use cell phones and outside of the US where most of humanity dwells they use Nokia more than any other product….

They may not have something as innovative as a iphone but they have more than enough market share to make up for it. I like their low end models as they tend to have better quality than all the other competitors so they build product loyalty from the beginning. … [T]heir commitment to quality combined with their huge oversea market share, attractive yield (4 %) and discounted share price makes me believe that [Nokia] is going to be sitting in my portfolio for a long, long time. Mobile phones are still (and will be for a long time) a huge macro-trend. Might as well own the biggest and the best...Outperform!

What do you think about Nokia, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Nokia is a Motley Fool Inside Value pick, Apple is a selection of Stock Advisor, and Google is a recommendation of Rule Breakers. The Fool's disclosure policy always gets a perfect score.


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Related Tickers

5/25/2012 4:01 PM
NOK $2.82 Up +0.08 +2.92%
Nokia CAPS Rating: ***
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