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BlackBerry (BB) Gains But Lags Market: What You Should Know

Zacks Equity Research

In the latest trading session, BlackBerry (BB) closed at $6.05, marking a +0.5% move from the previous day. This change lagged the S&P 500's 0.73% gain on the day. Elsewhere, the Dow gained 0.6%, while the tech-heavy Nasdaq added 1.13%.

Heading into today, shares of the cybersecurity software and services company had lost 9.34% over the past month, lagging the Computer and Technology sector's gain of 5.28% and the S&P 500's gain of 2.95% 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 $0.04, down 63.64% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.08 per share and revenue of $1.05 billion, which would represent changes of -66.67% and +14.19%, respectively, from the prior year.

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

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. BB currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, BB is currently trading at a Forward P/E ratio of 75.25. This valuation marks a premium compared to its industry's average Forward P/E of 12.05.

The Wireless Non-US industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 61, which puts it in the top 24% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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