Shares of BlackBerry (BB) have been strong performers lately, with the stock up 65.9% over the past month. The stock hit a new 52-week high of $6.61 in the previous session. BlackBerry has gained 68.1% since the start of the year compared to the 16.7% gain for the Zacks Computer and Technology sector and the -13.3% return for the Zacks Internet - Software industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on April 9, 2026, BlackBerry reported EPS of $0.06 versus consensus estimate of $0.05.
For the current fiscal year, BlackBerry is expected to post earnings of $0.17 per share on $600.2 in revenues. This represents a 6.25% change in EPS on a 9.31% change in revenues. For the next fiscal year, the company is expected to earn $0.2 per share on $648.3 in revenues. This represents a year-over-year change of 18.63% and 8.01%, respectively.
Valuation Metrics
While BlackBerry has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
BlackBerry has a Value Score of D. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 36.8X current fiscal year EPS estimates, which is a premium to the peer industry average of 19.3X. On a trailing cash flow basis, the stock currently trades at 40.7X versus its peer group's average of 19X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, BlackBerry currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if BlackBerry fits the bill. Thus, it seems as though BlackBerry shares could have potential in the weeks and months to come.
How Does BB Stack Up to the Competition?
Shares of BB have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is CCC Intelligent Solutions Holdings Inc. (CCC). CCC has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of B.
Earnings were strong last quarter. CCC Intelligent Solutions Holdings Inc. beat our consensus estimate by 10.00%, and for the current fiscal year, CCC is expected to post earnings of $0.44 per share on revenue of $1.16 billion.
Shares of CCC Intelligent Solutions Holdings Inc. have gained 2.8% over the past month, and currently trade at a forward P/E of 11.79X and a P/CF of 13.37X.
The Internet - Software industry is in the top 33% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BB and CCC, even beyond their own solid fundamental situation.
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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.
