Shareholders of Nokia Oyj (NOK, Financial), AbbVie Inc. (ABBV, Financial) and Microsoft Corp. (MSFT, Financial) saw the value of their shares increase significantly over the past year, outperforming the S&P 500 Index. The benchmark index for the U.S. market stands at $4,287.50 as of April 28, having gained 1% over the past year.
Wall Street sell-side analysts have also issued positive recommendation ratings for these stocks, which indicates their shares prices are expected to continue to improve in the months ahead.
Nokia Oyj
Nokia Oyj (NOK, Financial) is an Espoo, Finland-based telecommunications equipment, information technology and consumer electronics company operating globally.
Shares have risen nearly 8% over the past year. The stock was trading around $4.90 per share at close on Thursday for a market capitalization of $28.52 billion. The stock has a price-book ratio of 1.56.
Currently, the company is not paying dividends.
In terms of financial strength, GuruFocus has assigned a score of 6 out of 10 to the company. The Altman Z-Score of 1.56 indicates bankruptcy could occur within a few years. However, Nokia Oyj's return on invested capital of 6.39% (calculated using trailing 12-month income statement data) exceeds its weighted average cost of capital of 6.23%, meaning the investment returns more than it costs to raise the capital required for that investment. If this company continues to generate a positive excess return on new investment going forward, its value should increase as it continues to grow.
In terms of profitability, GuruFocus gave the company a score of 5 out of 10, driven by a return on the capital of 78.7% versus the industry median of 13.45%.
On Wall Street, the stock has a median recommendation rating of overweight and an average price target of $6.68 per share.
AbbVie Inc.
AbbVie Inc. (ABBV, Financial) is a Chicago-based drug major focusing on treatments for rheumatoid arthritis and psoriasis, as well as the development of therapies for specific forms of cancer.
Shares have risen 29.09% over the past three years through April 28. The stock closed at $156.31 per share on Thursday for a market capitalization of $253.32 billion. The stock has a price-book ratio of 16.46.
The company pays a quarterly dividend of $1.14 per common share. The next is scheduled for payment on May 16, with a forward dividend yield of 3.93% today.
Regarding the financial strength of the company, GuruFocus has assigned a score of 4 out of 10. The Altman Z-score of 1.96 suggests some kind of financial distress, so the risk of bankruptcy cannot be ruled out. However, AbbVie Inc.’s ROIC of 12.77% exceeds its WACC of 6.49%, meaning the investment returns more than it costs to raise the capital required for that investment. If this company continues to generate positive excess returns from new investments going forward, its value should increase as it continues to grow.
In terms of profitability, GuruFocus has assigned a score of 10 out of 10 to the company, which is driven by a return on the capital of 298.2% versus the industry median of 9%.
On Wall Street, the stock has a median recommendation rating of overweight and an average price target of approximately $165.07 per share.
Microsoft Corp
Microsoft Corp. (MSFT, Financial) is a Redmond, Washington-based developer, manufacturer, licensor and seller of computer software, personal computers and consumer electronics.
Shares have risen by 12.7% over the past year through April 28. The stock closed at $289.63 per share on Thursday for a market capitalization of $2.13 trillion. The stock has a price-book ratio of 13.07.
The company pays a quarterly dividend of 62 cents per common share. The next is scheduled for payment on June 9, with a forward dividend yield of 0.88% today.
In terms of financial strength, GuruFocus has assigned a score of 8 out of 10. The Altman Z-score of 9.11 suggests safe zones, while the Piotroski F-Score of 8 out of 9 indicates a very healthy condition.
In terms of profitability, GuruFocus has assigned a score of 10 out of 10 to the company, which is driven by an operating margin ratio of 42.56% versus the industry median of 3.73%.
On Wall Street, the stock has a median recommendation rating of buy and an average price target of $361.99 per share.
