Though Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) stock has declined about 4.5% this year so far, it’s still gone up a staggering 95.4% in the past 12 months. The Screener says in its latest research report that the stock’s mid-term technical trend has been slightly positive since May 23. Nokia’s four-week performance against the DJ Stoxx 600 index is -2.8%. This underperformance is likely to have shadowed the technical trend.

Nokia Corporation (ADR) (NOK)

Nokia is fundamentally undervalued

Nokia DJ Stoxx

The Screener says Nokia is fundamentally undervalued compared to its theoretical fair price. Notably, 29 analysts covering the stock have positively revised the Finnish company’s earnings growth estimate by 3.4% in the past seven weeks. This positive pressure on growth expectations confirms the positive technical trend. The positioning of Nokia with reference to the technology sector emphasizes that the positive trend of earnings revisions is creating a positive perception of the stock.

Monthly volatility of (15.1%) is much lower than the last few years’ average of (43.1%). Relatively lower magnitude of price fluctuations in the short-term indicates a dull investor activity in Nokia stock. The average daily trading volume has declined from 29.3 million on April 15 to 16.29 million on June 13. In contrast, Nokia’s long-term volatility of 44.1% is higher than (10.8%) of the DJ Stoxx 600 index. That reflects much higher price variations for Nokia compared to the European market as a whole.

Nokia Volatility

Nokia is fairly correlated to the DJ Stoxx 600 index

Nokia has a correlation rate of 0.48, suggesting that 48% of variations in the stock are explained by index variations. The stock is fairly correlated to the DJ Stoxx 600 index. The research firm said that the risk investors take on Nokia falls in the “average” category, and it has remained so since November 26, 2013.

Nokia Risk Evolution

Since selling its device business to Microsoft Corporation (NASDAQ:MSFT), Nokia has been improving its business. The Finnish company is consistently adding new features to its HERE maps to expand the user base. Last month, Nokia acquired Desti, a natural language processing and artificial intelligence startup, to help improve its HERE mapping business. The company has received upgrades from several analysts in the past few weeks. Analysts believe that the company’s IP portfolio has immense monetization potential.