Nokia Corporation (ADR) (NOK): Three Reasons Why the Lumia 925 Will Succeed

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Investors should pay close attention to the smartphone market as sales continue to grow at an explosive rate. Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG) are the dominant forces in the smartphone market. Apple’s iOS and Google Inc (NASDAQ:GOOG)’s Android lead the smartphone operating system race. For Apple, recent movements has been disappointing, as its stock fell around 46% on April 19 from its 52-week high of $705 on September 21. Apple has an EPS of 41.90, and the stock now trades over 50% its average Wall Street target. Standpoint Research initiated a buy rating with a price target of $480.

Google has seen about 900 million Android devices activated. The ability of Android to provide a broad selection of devices for its partners continues to make it a clear leader in the market. Some analysts are eying the $1,000 per share mark for next year. It crested $881 this week, and has seen a 2% pullback from its 52-week high, so this might be an opportunity to get in.

Summary

Relying on innovations and its connection with the emerging markets, Nokia will grow sales. Its shares hit a 52-week low of $1.63 on July 18 last year. But Nokia came roaring back in the following months and reached its 52-week high $4.90 on January 23. The stock is now trading below $4. I believe it will continue its upward trajectory as Lumia sales improve. Argus upgraded it to buy in February with a $6 price target.

The article 3 Reasons Why the Lumia 925 Will Succeed originally appeared on Fool.com and is written by Adetokunbo Abiola.

Adetokunbo Abiola has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple and Microsoft. Adetokunbo is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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