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BlackBerry (BB) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

BlackBerry (BB) closed at $5.22 in the latest trading session, marking a +0.97% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.41%. Elsewhere, the Dow gained 0.57%, while the tech-heavy Nasdaq added 0.7%.

Prior to today's trading, shares of the cybersecurity software and services company had lost 5.14% over the past month. This has lagged the Computer and Technology sector's gain of 2.38% and the S&P 500's gain of 2.04% in that time.

Investors will be hoping for strength from BB as it approaches its next earnings release. 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%.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.05 per share and revenue of $1.10 billion. These totals would mark changes of -79.17% and +19.65%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for BB. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. BB is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, BB is holding a Forward P/E ratio of 96.94. This represents a premium compared to its industry's average Forward P/E of 15.03.

The Wireless Non-US industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 161, putting it in the bottom 37% 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.

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


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