BlackBerry (BB) Gains But Lags Market: What You Should Know
In the latest trading session, BlackBerry (BB) closed at $8.25, marking a +0.73% move from the previous day. This move lagged the S&P 500's daily gain of 0.85%. Elsewhere, the Dow gained 0.77%, while the tech-heavy Nasdaq added 1.08%.
Prior to today's trading, shares of the cybersecurity software and services company had lost 11.56% over the past month. This has lagged the Computer and Technology sector's loss of 4.99% and the S&P 500's loss of 2.06% 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, the Zacks Consensus Estimate for revenue is projecting net sales of $249.12 million, up 14.8% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.10 per share and revenue of $1.13 billion. These totals would mark changes of -58.33% and +22.99%, respectively, from last 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. BB is currently a Zacks Rank #3 (Hold).
Digging into valuation, BB currently has a Forward P/E ratio of 86.21. Its industry sports an average Forward P/E of 13.22, 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 235, putting it in the bottom 9% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.