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

Zacks Equity Research

In the latest trading session, BlackBerry (BB) closed at $6.81, marking a +1.19% move from the previous day. This change outpaced the S&P 500's 0.66% gain on the day. At the same time, the Dow added 1%, and the tech-heavy Nasdaq gained 0.38%.

Prior to today's trading, shares of the cybersecurity software and services company had lost 9.42% over the past month. This has lagged the Computer and Technology sector's loss of 6.46% and the S&P 500's loss of 5.01% 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 125%.

BB's full-year Zacks Consensus Estimates are calling for earnings of $0.06 per share and revenue of $1.13 billion. These results would represent year-over-year changes of -75% and +22.95%, respectively.

Any recent changes to analyst estimates for BB should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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. 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.

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).

In terms of valuation, BB is currently trading at a Forward P/E ratio of 118.76. This valuation marks a premium compared to its industry's average Forward P/E of 14.47.

The Wireless Non-US industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 220, which puts it in the bottom 15% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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