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BlackBerry (BB) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
First Commonwealth Financial (FCF) delivered earnings and revenue surprises of 3.70% and 1.01%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?

In the latest trading session, BlackBerry (BB) closed at $8.99, marking a -1.86% move from the previous day. This change lagged the S&P 500's 1.65% loss on the day. At the same time, the Dow lost 1.79%, and the tech-heavy Nasdaq lost 1.96%.

Coming into today, shares of the cybersecurity software and services company had lost 2.14% in the past month. In that same time, the Computer and Technology sector gained 1.89%, while the S&P 500 gained 1.53%.

Wall Street will be looking for positivity from BB as it approaches its next earnings report date. In that report, analysts expect BB to post earnings of $0.01 per share. This would mark a year-over-year decline of 66.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $249.12 million, up 14.8% from the year-ago period.

BB's full-year Zacks Consensus Estimates are calling for earnings of $0.10 per share and revenue of $1.13 billion. These results would represent year-over-year changes of -58.33% and +22.99%, respectively.

It is also important to note the recent changes to analyst estimates for BB. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. BB is currently a Zacks Rank #3 (Hold).

Looking at its valuation, BB is holding a Forward P/E ratio of 96.42. Its industry sports an average Forward P/E of 13.14, so we one might conclude that BB is trading at a premium comparatively.

The Wireless Non-US industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 233, which puts it in the bottom 9% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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