5 Tech Stocks with Low PE Ratios

1. Nokia Oyj (NYSE:NOK)

PE Ratio as of November 9: 4.66

Nokia Oyj (NYSE:NOK) is a Finnish company that provides network and Internet protocol (IP) infrastructure, software, and related services. The multinational corporation has offices in Asia-Pacific and Japan, Europe, Greater China, India, Latin America, the Middle East and Africa, and North America.

On October 23, Nokia Oyj (NYSE:NOK) announced its new portfolio of carrier-grade Wi-Fi 7 broadband devices, and their certification and compliance with the standard are expected to be completed in 2024. The management commented that the devices will be able to deliver multi-gigabit broadband services that are in demand in the market.

On October 24, Nokia Oyj (NYSE:NOK) announced an expansion of its FastMile 5G Fixed Wireless Access (FWA) portfolio, which will add indoor and outdoor devices. They are set to be available in the early months of 2024. According to the management, the devices will enhance FWA services by improving operators’ network capacity.

Over the last three months, Nokia Oyj (NYSE:NOK)’s stock has been covered by five analysts who maintain a Buy rating on the company shares. The average price target is $5.68, showing an upside of 64.64% from its stock price of $3.45 as of November 9 market close.

Nokia Oyj (NYSE:NOK) was mentioned in Artisan Partners’ second quarter 2023 investor letter. Here is what it said:

“Nokia Oyj (NYSE:NOK) is the world’s third-largest provider of telecommunications equipment. The company sells its products to service providers, such as AT&T and Vodaphone. While we have held the stock, new management has simultaneously improved competitiveness and reduced costs—a remarkable achievement that has resulted in improved growth and profitability. Despite that, the share price has declined, and the valuation multiple has shrunk below 10X forward earnings. The reason is that telecommunications operators are cutting back on investment. Higher interest rates, inflation and competition are eating into customer cash flows, resulting in less capital spending. For now, Nokia will experience reduced demand. At some point, the ever-increasing need for wire and wireless bandwidth will force service providers to increase investment. In addition, Nokia’s market share is improving due to geopolitical changes and improved market competitiveness. The share price declined by 15% during the quarter.”

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