BlackBerry (BB) ended the recent trading session at $6.21, demonstrating a -2.74% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.67%. Elsewhere, the Dow lost 0.65%, while the tech-heavy Nasdaq lost 0.84%.
The stock of cybersecurity software and services company has risen by 16% in the past month, leading the Computer and Technology sector's gain of 9.44% and the S&P 500's gain of 4%.
The investment community will be closely monitoring the performance of BlackBerry in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.03, marking a 50% rise compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.17 per share and revenue of $600.2 million, indicating changes of +6.25% and +9.31%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for BlackBerry. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. BlackBerry currently has a Zacks Rank of #2 (Buy).
From a valuation perspective, BlackBerry is currently exchanging hands at a Forward P/E ratio of 36.81. This denotes a premium relative to the industry average Forward P/E of 18.56.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 74, finds itself in the top 31% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
