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BlackBerry (BB) Gains As Market Dips: What You Should Know

BlackBerry (BB) closed at $8.66 in the latest trading session, marking a +0.81% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.82%. Elsewhere, the Dow lost 2.21%, while the tech-heavy Nasdaq lost 1.7%.

Prior to today's trading, shares of the cybersecurity software and services company had lost 9.29% over the past month. This has lagged the Computer and Technology sector's loss of 5.96% and the S&P 500's loss of 2.57% in that time.

Wall Street will be looking for positivity from BB as it approaches its next earnings report date. This is expected to be December 19, 2018. On that day, BB is projected to report earnings of $0.02 per share, which would represent a year-over-year decline of 33.33%. Our most recent consensus estimate is calling for quarterly revenue of $212.58 million, down 5.94% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.11 per share and revenue of $880.89 million, which would represent changes of -21.43% and -8.05%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for BB. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating 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 #1 (Strong Buy) right now.

Digging into valuation, BB currently has a Forward P/E ratio of 78.09. This represents a premium compared to its industry's average Forward P/E of 13.94.

We can also see that BB currently has a PEG ratio of 4.21. 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 was holding an average PEG ratio of 0.98 at yesterday's closing price.

The Wireless Non-US industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 171, which puts it in the bottom 33% 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.

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


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