BlackBerry (BB) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

BlackBerry (BB) closed the most recent trading day at $5.47, moving -0.55% from the previous trading session. This move lagged the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.46%, and the tech-heavy Nasdaq gained 0.17%.

Coming into today, shares of the cybersecurity software and services company had lost 14.2% in the past month. In that same time, the Computer and Technology sector lost 5.23%, while the S&P 500 lost 4.88%.

Wall Street will be looking for positivity from BB as it approaches its next earnings report date. The company is expected to report EPS of $0.04, down 63.64% from the prior-year quarter.

BB's full-year Zacks Consensus Estimates are calling for earnings of $0.08 per share and revenue of $1.05 billion. These results would represent year-over-year changes of -66.67% and +14.19%, 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. BB is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note BB's current valuation metrics, including its Forward P/E ratio of 68.75. This valuation marks a premium compared to its industry's average Forward P/E of 12.3.

The Wireless Non-US industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 162, which puts it in the bottom 37% 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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