BlackBerry (BB) Stock Sinks As Market Gains: What You Should Know
BlackBerry (BB) closed the most recent trading day at $6.68, moving -1.04% from the previous trading session. This change lagged the S&P 500's 0.25% gain on the day. Meanwhile, the Dow gained 0.39%, and the Nasdaq, a tech-heavy index, lost 0.09%.
Prior to today's trading, shares of the cybersecurity software and services company had lost 4.93% over the past month. This has was narrower than the Computer and Technology sector's loss of 5.18% and the S&P 500's loss of 5.58% in that time.
Wall Street will be looking for positivity from BB as it approaches its next earnings report date. On that day, BB is projected to report earnings of -$0.01 per share, which would represent a year-over-year decline of 125%.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.06 per share and revenue of $1.13 billion. These totals would mark changes of -75% and +22.95%, respectively, from last year.
Any recent changes to analyst estimates for BB should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that BB has a Forward P/E ratio of 119.12 right now. For comparison, its industry has an average Forward P/E of 13.95, which means BB is trading at a premium to the group.
The Wireless Non-US industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 221, which puts it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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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.