5 Best Fundamentally Strong Penny Stocks To Invest In

This article presents an overview of the 5 Best Fundamentally Strong Penny Stocks To Invest In. For a detailed overview of such stocks, read our article, 11 Best Fundamentally Strong Penny Stocks To Invest In.

5. Nokia Oyj (NYSE:NOK)

Number of Hedge Fund Investors: 17

Despite uncertainty and lack of stock price growth over the past few years, Nokia Oyj (NYSE:NOK) remains a fundamentally strong company with growth catalysts like 5G on the horizon.

In October Nokia Oyj (NYSE:NOK) maintained its FY23 outlook despite weak operator spending. Nokia Oyj (NYSE:NOK) also plans to cut 14,000 jobs.

Earlier this month Nokia Oyj (NYSE:NOK) said it plans to acquire Virginia-based Fenix Group to strengthen wireless offerings in the defense segment.

Artisan International Value Fund made the following comment about Nokia Oyj (NYSE:NOK) in its second quarter 2023 investor letter:

“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.”