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BlackBerry (BB) Stock Sinks As Market Gains: What You Should Know

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BlackBerry (BB - Free Report) closed at $7.19 in the latest trading session, marking a -1.24% move from the prior day. This move lagged the S&P 500's daily gain of 0.09%. Meanwhile, the Dow gained 0.26%, and the Nasdaq, a tech-heavy index, lost 0.17%.

Prior to today's trading, shares of the cybersecurity software and services company had gained 3.12% over the past month. This has lagged the Computer and Technology sector's gain of 5.65% and the S&P 500's gain of 4.92% in that time.

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 -$0.01, down 125% from the prior-year quarter.

BB's full-year Zacks Consensus Estimates are calling for earnings of $0.06 per share and revenue of $1.13 billion. These results would represent year-over-year changes of -75% and +22.95%, respectively.

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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. BB currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, BB is holding a Forward P/E ratio of 128.47. For comparison, its industry has an average Forward P/E of 14.83, 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 225, which puts it in the bottom 13% 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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