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

Zacks Equity Research
United Technologies (UTX) closed the most recent trading day at $132.53, moving +0.94% from the previous trading session.

BlackBerry (BB) closed the most recent trading day at $8.48, moving -0.47% from the previous trading session. This change lagged the S&P 500's 0.35% loss on the day. At the same time, the Dow lost 0.4%, and the tech-heavy Nasdaq lost 0.39%.

Coming into today, shares of the cybersecurity software and services company had gained 10.36% in the past month. In that same time, the Computer and Technology sector gained 5.75%, while the S&P 500 gained 4.48%.

Wall Street will be looking for positivity from BB as it approaches its next earnings report date. On that day, BB is projected to report earnings of $0.04 per share, which would represent a year-over-year decline of 20%. Meanwhile, our latest consensus estimate is calling for revenue of $227.14 million, down 4.96% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.16 per share and revenue of $890.07 million, which would represent changes of +14.29% and -7.09%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for BB. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. BB is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that BB has a Forward P/E ratio of 52.16 right now. This valuation marks a premium compared to its industry's average Forward P/E of 12.79.

We can also see that BB currently has a PEG ratio of 2.81. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Wireless Non-US industry currently had an average PEG ratio of 1.29 as of yesterday's close.

The Wireless Non-US industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 79, which puts it in the top 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow BB in the coming trading sessions, be sure to utilize Zacks.com.

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