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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 $5.63, marking a +1.26% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.16%. Elsewhere, the Dow 0%, while the tech-heavy Nasdaq added 0.26%.

Heading into today, shares of the cybersecurity software and services company had gained 6.51% over the past month, outpacing the Computer and Technology sector's gain of 4.79% and the S&P 500's gain of 4.12% in that time.

Investors will be hoping for strength from BB as it approaches its next earnings release. The company is expected to report EPS of $0.01, down 66.67% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.05 per share and revenue of $1.10 billion, which would represent changes of -79.17% and +19.65%, 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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. BB is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, BB currently has a Forward P/E ratio of 104.25. This represents a premium compared to its industry's average Forward P/E of 14.84.

The Wireless Non-US industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 18, putting it in the top 8% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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