5 Cheapest Penny Stocks According to Analysts

2. Nokia Oyj (NYSE:NOK)

PE Ratio (TTM) as of March 9: 6.08

Average Upside Potential as of March 9: 32.57%

Number of Hedge Fund Holders: 17

Nokia Oyj (NYSE:NOK) is a leading Finnish telecommunications services and consumer electronics provider. The company has four divisions: Network Infrastructure, Mobile Networks, Cloud & Network Services, and Nokia Technologies. Nokia Oyj (NYSE:NOK) was held by 17 hedge funds at the close of Q4 2022. These funds disclosed positions worth $461.3 million in the company. As of December 31, LMR Partners is the leading investor in the company and has a position worth $47.8 million.

On February 14, Credit Suisse analyst Adithya Metuku updated his price target on Nokia Oyj (NYSE:NOK) to EUR 5.61 from EUR 6.05 and reiterated an Outperform rating on the shares. As of March 9, the stock has a TTM PE ratio of 6.08.

Nokia Oyj (NYSE:NOK) is placed second among the cheapest penny stocks to buy now according to analysts. The stock has received coverage from 31 analysts, of which 18 recommend to Buy the stock. The stock has an average price target of $6.30 which implies an upside of 32.57% from current levels.

Here is what Horos Asset Management had to say about Nokia Oyj (NYSE:NOK) in its Q3 2022 investor letter:

“Two clear examples of value traps that I remember with particular anger includes Nokia(NYSE:NOK). Two companies that suffered a rapid technological disruption in their business model and did not know or were not able to reinvent themselves in time. In the case of Nokia, we were dealing with the undisputed leader in cell phone sales. The company had an (apparently) ultra-solid balance sheet and enviable operating margins. However, the arrival of the smartphone brought a radical change to the industry, to which Nokia did not know how to adapt. In a short period of time, players such as Apple and Samsung wiped the Finnish giant off the map.”