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

In the latest trading session, BlackBerry (BB) closed at $7.94, marking a +1.28% move from the previous day. This move outpaced the S&P 500's daily gain of 1.05%. At the same time, the Dow added 1.02%, and the tech-heavy Nasdaq gained 1.66%.

Heading into today, shares of the cybersecurity software and services company had lost 10.18% over the past month, lagging the Computer and Technology sector's loss of 3.49% and the S&P 500's loss of 0.08% in that time.

Investors will be hoping for strength from BB as it approaches its next earnings release. On that day, BB is projected to report earnings of $0.01 per share, which would represent a year-over-year decline of 66.67%. Meanwhile, our latest consensus estimate is calling for revenue of $249.12 million, up 14.8% from the prior-year quarter.

BB's full-year Zacks Consensus Estimates are calling for earnings of $0.10 per share and revenue of $1.13 billion. These results would represent year-over-year changes of -58.33% and +22.99%, respectively.

Investors might also notice recent changes to analyst estimates for BB. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that BB has a Forward P/E ratio of 83.58 right now. Its industry sports an average Forward P/E of 13.77, so we one might conclude that BB is trading at a premium comparatively.

The Wireless Non-US industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 218, putting it in the bottom 15% 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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