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

Zacks Equity Research
Benefitfocus (BNFT) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

In the latest trading session, BlackBerry (BB) closed at $8.26, marking a +1.85% move from the previous day. This move outpaced the S&P 500's daily gain of 0.07%. Elsewhere, the Dow lost 0.21%, while the tech-heavy Nasdaq added 0.13%.

Coming into today, shares of the cybersecurity software and services company had gained 7.85% in the past month. In that same time, the Computer and Technology sector gained 7.08%, while the S&P 500 gained 5.36%.

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 $0.04 per share. This would mark 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.

BB's full-year Zacks Consensus Estimates are calling for earnings of $0.16 per share and revenue of $890.07 million. These results would represent year-over-year changes of +14.29% and -7.09%, respectively.

Investors should also note any recent changes to analyst estimates for BB. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. BB is currently sporting a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, BB is holding a Forward P/E ratio of 49.65. This valuation marks a premium compared to its industry's average Forward P/E of 12.58.

Also, we should mention that BB has a PEG ratio of 2.68. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Wireless Non-US industry currently had an average PEG ratio of 1.31 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 56, which puts it in the top 22% 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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